Benchmark Maintains Buy, $18 PT on Marvell Technology
Benchmark reiterates its Buy rating and $18 price target on Marvell Technology Group, Ltd. (NASDAQ: MRVL) as HDD supply chain interruption fears offset better than expected results.
According to Benchmark, “Marvell reported better-than-consensus 3Q12 revenue and EPS. Revenue of $950.4 million compared favorably to consensus of $944.2 million and Benchmark's estimate of $930 million. We recently cut our 3Q12 revenue estimate based on the flooding in Thailand. However, the HDD supply chain problems may have more of an impact on 4Q12 results. Management's original 3Q12 revenue guidance was $940 million to $980 million. The flooding in Thailand had a $20 million negative impact to Marvell's 3Q11 overall revenue.”
MRVL closed at $13.74 per share on Thursday.
