Oppenheimer Lifts Marvell’s PT Ahead Of 2Q Earnings

August 24, 2020

1 minute read

Oppenheimer raised Marvell Technologies’ price target to $40 (19.5% upside potential) from $35 and reiterated a Buy rating on the stock ahead of the integrated circuit maker’s 2Q results on Aug. 27.

Rick Schafer wrote in a note to investors that Marvell Technologies (MRVL) remains his “top 5G RAN play.” Schafer sees upside setup driven by 5G and DC/Cloud.” data-reactid=”13″>Oppenheimer analyst Rick Schafer wrote in a note to investors that Marvell Technologies (MRVL) remains his “top 5G RAN play.” Schafer sees upside setup driven by 5G and DC/Cloud.

“In 5G, we see incremental $2B/year of RAN revenue within 3–4 years. MRVL has >$3K/BTS 5G RAN content with Samsung, ~$400/BTS at ERIC/ZTE and NOK (~$1200/BTS, ramps 4Q),” the analyst wrote in a note to investors. “Cloud (>10% of revenues), the second leg of MRVL’s growth story, presents a larger opportunity than 5G. MRVL remains our top 5G RAN play. DC/Cloud presents upside optionality.”

See MRVL stock analysis on TipRanks).” data-reactid=”19″>Strong demand for networking products from 5G infrastructure and datacenter end markets are driving Marvell’s revenues. In 1Q, the company’s revenues and adjusted EPS increased by 4.7% and 12.5%, respectively, on a year-over-year basis. (See MRVL stock analysis on TipRanks).

For 2Q, Marvell anticipates revenues of approximately $720 million (+/- 5%), indicating a year-on-year growth of 9.7%. Its adjusted EPS guidance range of $0.17-$0.23 signifies an increase of 6%-44% from the year-ago quarter’s earnings of $0.16.

price target of $38.05 implies an upside potential of about 13.7%. Shares are up 26% year-to-date.” data-reactid=”21″>Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 16 Buys and 3 Holds. The average price target of $38.05 implies an upside potential of about 13.7%. Shares are up 26% year-to-date.