UPDATE: Citigroup Cuts PT to $18 on Marvell Technology Group; Lower Market Multiples

Citigroup lowers its price target on Marvell Technology Group MRVL from $19 to $18 and reiterates its Buy rating on shares. Citigroup notes, "The combination of Marvell's 1Q13(Apr) results and coincident initiation of a quarterly dividend ($0.06 or 1.8% yield) are likely to help rebuild confidence in the shares (down 4% YTD vs. SOX up 2%). Strong growth (and share gain) in TD smartphones, share regain in HDD (post-flood), and relative out-performance in networking put the company on more constructive fundamental footing. Meanwhile, a dividend yield in the second quartile of chip companies but P/E in the bottom quartile, underscore the value proposition. We lower our PT to reflect lower market multiples, but continue to rate the shares Buy." MRVL closed at $13.30 on Thursday.