Citigroup Maintains Buy on Marvell Technology Group Despite Underperformance

Citigroup has published a research report on Marvell Technology Group

after the stock's recent underperformance. In the report, Citigroup writes, "Marvell shares have underperformed in 2012 (12.6% YTD vs. SOX 19.3%), reflecting investor questions about their long-term growth trajectory in light of recent misses. This has left shares at 13.1x F2013 EPS, below the sector average of 17.7x. While we suspect questions about long-term growth will persist, we are encouraged by China's decision to extend 3G life (thereby extending Marvell's opportunity in TD smartphones) and by the recent improvement in HDD momentum (Marvell may now beat F1Q13(Apr)). When adding Marvell's recently introduced SSD controller (may add confidence in Marvell's SSD opportunity), we believe the shares are poised for a near-term rally. We add that, after a recent pullback, semis may be poised to rally helping boost Marvell shares." Citigroup maintains its Buy rating and $19 price target on Marvell Technology, which is currently trading up $0.19 from yesterday's $15.37 closing price.