Market Overview

RBC Analyst On Marvell/Lenovo Rumor: 'I Guess It Wouldn't Surprise Me'

Share:
Related MRVL
Morgan Stanley's Key CES Takeaways For Semi Companies
Citi Adds Nvidia, Marvell Technology To Holiday Shopping List

A rumor that Marvell Technology Group Ltd. (NASDAQ: MRVL) will soon receive a $19 a share bid from Lenovo Group Ltd. (OTC: LNVGY) has the ring of plausibility, an analyst said Friday.

RBC Capital Markets analyst Doug Freedman told Benzinga that if Lenovo made an offer, "I guess it wouldn't surprise me."

Marvell closed Friday at $15.49, up more than 1 percent. The shares hit an intraday high of $15.77 shortly after the rumor emerged.

Freedman, who maintains a $21 target on Marvell, cautioned that the high number of shares held by company insiders "definitely creates a challenge" for any would-be acquirer.

Chief Executive Sehat Sutardja and President Weili Dai held a combined 13.5 percent stake as of the company's most recent proxy filing in May.

Greenlight Capital held an 8.7 percent stake and Kohlberg Kravis Roberts & Co. held 6.6 percent, according to the filing.

Freedman said Marvell declined to respond earlier this month to his inquiry about reports out of China that multiple parties wanted to invest in the company's mobile business.

"But to me, the 'no comment' was different from what we'd heard in the past," Freedman said. "There seemed to be a willingness to work with the Chinese."

Citing his $21 target, Freedman said "at $19, maybe that's a starting offer -- if it's an offer at all."

Brianna Valleskey contributed to this report.

Latest Ratings for MRVL

DateFirmActionFromTo
Dec 2018CitigroupUpgradesNeutralBuy
Dec 2018CitigroupMaintainsNeutralNeutral
Dec 2018Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for MRVL
View the Latest Analyst Ratings

Posted-In: Doug Freedman RBC Capital MarketsAnalyst Color News Rumors Exclusives Analyst Ratings

 

Related Articles (MRVL + LNVGY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
FNDUBSUpgrades37.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

All About Shake Shack's Secret Menu: Peanut Butter & Bacon!

Weekly Tech Highlights: Apple's iPhone Breaks Many Records, Google Disappoints And More