RBC Capital Affirms Outperform on Marvell, $360 PT
RBC Capital analyst Srini Pajjuri reiterated an Outperform rating and $360 price target on Marvell (NASDAQ: MRVL).
“Google, MSFT, and scale-up opportunity in focus; At MRVL’s upcoming investor day, we expect management to (1) size the Google custom program opportunity and raise FY29 (CY28) AI revenue forecast by at least $2B from the current $10B+, (2) slightly raise MSFT XPU contribution for FY28, and (3) highlight upcoming scale-across and scale-up optical/switching opportunities.
Management will likely offer CY30 data center TAM and market share targets which should be materially above prior forecasts ($94B TAM, 20% share target for CY28), along with higher OPM targets, implying $15-$20 EPS potential.
We are leaving our estimates unchanged but continue to like the story given >50% revenue growth potential for the next 2-3 years.
In addition, MRVL is one of the very few Semi stocks in our coverage with revenue acceleration potential in CY27 and CY28, which we think justifies premium valuation. Reiterate Outperform.”
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