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UPDATE: Nomura Raises PT on Marvell Technology Following FQ2 Revenue/EPS Report

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In a report published Friday, Nomura analyst Romit Shah reiterated a Neutral rating on Marvell Technology Group Ltd. (NASDAQ: MRVL), and raised the price target from $10.00 to $11.00.

In the report, Nomura noted, “FQ2 revenue of $807mn and EPS (with stock comp) of $0.15 beat our estimates of $790mn and $0.12, respectively. Gross margin of 53.0% was better than our estimate of 52.5% due to favourable product mix. The company also benefited from currency gains and lower tax expense, offset by higher stock-based compensation. The revenue upside was driven by storage (52% of sales), which grew 8% qoq vs. guidance of flat qoq. FQ3 revenue guidance of $850-890mn is better than our estimate of $854mn and consensus of $842mn. That said, gross margin is expected to drop 200bps to 51.0% (vs. our estimate of 52%) due to product mix. We are raising our EPS estimate for CY13 based on higher revenue assumptions.”

Marvell Technology Group Ltd. closed on Thursday at $12.96.

Latest Ratings for MRVL

DateFirmActionFromTo
Nov 2014Deutsche BankMaintainsHold
Nov 2014Morgan StanleyMaintainsEqual-weight
Nov 2014NomuraMaintainsBuy

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