Monday, November 22, 2010

Marvell (NASDAQ:MRVL) Missing Catalysts Going Forward

FBR Capital sees Marvell (NASDAQ:MRVL) as a mixed bag at this time, with few catalysts in the near term to drive the company, although they added they consider weakness as an opportunity to buy more shares.

Marvell has an "Outperform" rating on them from FBR.

FBR said, "Marvell does have 2011 revenue growth opportunities, but management declined to discuss the potential magnitude of China Mobile Ophone chips, Seagate and Hitachi hard drive share gains, combo chip shipments, or others, likely leaving some investors with low visibility into near-term growth catalysts. Some things are going well at Marvell, and other things are going less well. Given these "going well" factors, combined with the stock's low 11x P/E multiple (2011, including stock compensation), we remain Outperform-rated on Marvell, but note that the stock seems somewhat catalyst-light outside of management's share buyback plan."

Marvell was trading Friday at $20.11, rising by $1.17, or 6.18 percent at 3:51 PM EST. FBR has a price target of $25 on the company.

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