BofA Securities Raises Marvell Price Target to $240
BofA Securities analyst Vivek Arya raised the price target on Marvell Technology (NASDAQ: MRVL) to $240.00 (from $200.00) while maintaining a Buy rating.
“We reiterate our Buy on top compute pick MRVL.
Its unique accelerating growth franchise arguably has the broadest breadth of premium IP across compute, CPU, accelerators/LPU, networking, optics/CPO, memory/storage (incl. emerging CXL standard) and security.
The company beat/raised again, with FY27/FY28E (roughly CY26/27E) sales raised to $11.5bn/$16.5bn from $11bn/$15bn prior, as optics business continues to surge.
The company also offered a high-level outlook for FY29 with custom compute going to $10bn from $4bn YoY.
Overall we raise FY27/28/29E pf-EPS by +6%/+9%/+29% to $4.06/$6.11/$10.02, which represents an accelerating EPS growth rate. Our model suggests MRVL’s pf-EPS could 2.5x by CY28 and nearly 4x by CY30.
Key risks are the lumpiness and competitive nature of custom programs. We raise our PO to $240 from $200 based on unchanged 30x FY29/CY28E PE (incl. SBC).
Closest comp AMD is trading at a 2-3x turn premium, so there could be headroom for multiple expansion as MRVL executes on its custom programs and maintains/expands share in compute/connectivity.”
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