UPDATE: Citigroup Reiterates Hold on Marvel Technology Following Patent Infringement Verdict
Citigroup maintained Marvel Technology (NASDAQ: MRVL) at Hold with an $8.50 price target.
Citigroup noted, "While the journey through the appeals process is apt to take several quarters, and the odds typically stand with the defendant in infringement cases (~75% in favor of defendant), we believe the initial verdict against Marvell will overhang the shares for some time. Both the size of the verdict ($1.17B compared to Marvell's $2.05B cash balance) and the impact to its largest revenue source (HDD is 47% of Marvell's revenues) will likely temper investors' willingness to invest in the shares. Thus, despite signs of order stabilization in the PC market (order cancellations to NB ODM's ceased in November), we stand-by our September 9th downgrade of Marvell shares."
Marvel Technology closed at $7.39 on Wednesday.
Latest Ratings for MRVL
|Oct 2016||Credit Suisse||Upgrades||Neutral||Outperform|
|Sep 2016||Susquehanna||Initiates Coverage on||Neutral|
|Sep 2016||Goldman Sachs||Assumes||Neutral|
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