Erste Group Downgrades Marvell to Hold

Erste Group analyst Hans Engel downgraded Marvell (NASDAQ: MRVL) from Buy to Hold.

“The company forecasts revenue of USD 2.7 billion for the second quarter, representing year-over-year growth of +35%.

The gross margin is expected to range between 52.1% and 53.1%, and earnings per share are projected to be approximately USD 0.93.

A sustained increase in the operating margin appears uncertain because the company is heavily dependent on a small number of customers.

Based on the P/E ratio, the company’s stock is valued higher than the industry average, and growth in operating income and net income is lower.”

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