UPDATE: Nomura Raises PT on Marvell Technology Following FQ2 Revenue/EPS Report
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
|Sep 2016||Susquehanna||Initiates Coverage on||Neutral|
|Sep 2016||Goldman Sachs||Reinstates||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.