Several firms are commenting on Marvell Tech (NASDAQ:MRLV) after the co released its Q4 results and guidance last night:
- Citigroup notes a much better-than-expected print left little for the Bears. However, once again the stock traded off post-close on the outlook's sequential growth (-8%) despite Street F1Q09 and F09 revenues which will reset HIGHER, and Street F09 EPS which should remain flat. They think MRVL's high-teens annual revenue growth and 700 bps of intra-year operating margin expansion are compelling catalysts which can pull the shares steadily higher through the year. A trough 15x multiple on ther C08E $0.72 EPS implies downside to $11.0 versus upside of 74% to $19 target, compelling risk/reward. Reits Buy.
- Deutsche Bank believes that MRVL is poised to experience a strong C08 driven by multiple product cycles in enterprise & mobile storage ICs, 802.11n WLAN ramps in enterprise, retail & notebooks, combo WLAN+Bluetooth products in embedded applications, & 3G Cellular for RIMM. Given 3 quarters in a row of revenue upside and 5 quarters in a row of operating margin expansion, they believe that the stock could perform well even in a slow demand environment. Reits Buy and $16 tgt.
Notablecalls: I continue to like MRVL here and believe the stock is bound to bounce this AM.
- Citigroup notes a much better-than-expected print left little for the Bears. However, once again the stock traded off post-close on the outlook's sequential growth (-8%) despite Street F1Q09 and F09 revenues which will reset HIGHER, and Street F09 EPS which should remain flat. They think MRVL's high-teens annual revenue growth and 700 bps of intra-year operating margin expansion are compelling catalysts which can pull the shares steadily higher through the year. A trough 15x multiple on ther C08E $0.72 EPS implies downside to $11.0 versus upside of 74% to $19 target, compelling risk/reward. Reits Buy.
- Deutsche Bank believes that MRVL is poised to experience a strong C08 driven by multiple product cycles in enterprise & mobile storage ICs, 802.11n WLAN ramps in enterprise, retail & notebooks, combo WLAN+Bluetooth products in embedded applications, & 3G Cellular for RIMM. Given 3 quarters in a row of revenue upside and 5 quarters in a row of operating margin expansion, they believe that the stock could perform well even in a slow demand environment. Reits Buy and $16 tgt.
Notablecalls: I continue to like MRVL here and believe the stock is bound to bounce this AM.
This is a tough bubsiness and market as Analayst calls are meaningless right and left.. OUch on ENOC and MRVL!!
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