Stifel Downgrades Marvell Technology Group

On Wednesday, analysts at Stifel downgraded shares of Marvell Technology Group MRVL from Buy to Hold.

Kevin Cassidy writes, “We believe increasing commoditization of mobile SoCs could pressure revenue growth and gross margins, adding risk to our estimates. Also market speculation of the potential spinoff of mobile products is mostly priced into the shares, in our view. These factors along with the overhang of the CMU lawsuit have us moving to the sidelines.”

Cassidy finds that Marvell shares are currently trading within 10 percent of the firm’s 12 month price target and have gained roughly 12 percent year-to-date.

“With the shares trading at their current level, compounded by the overhanging risk of the CMU litigation, we suggest investors move to the sidelines.”

Shares of Marvell Technology Group traded recently at $16.10 down 0.5 percent.