Tuesday, January 11, 2011

Marvell (NASDAQ:MRVL) Outlook Confirmed by HDD Share Gains

Citing applications processors, basebands and gain in market share in HDDs, Gleacher remains confident in the outlook for Marvell (NASDAQ:MRVL).

Gleacher says, "We remain confident in our thesis on MRVL based on share gains in HDDs, competitive positioning in basebands and applications processors behind QUALCOMM (Nasdaq:QCOM) and Broadcom (Nasdaq:BRCM), and solid positioning in Ophone and the enterprise.

"Our FY12 forecast assumes an approximately $390mil contribution of a total $1bil+ longer-term opportunity from several large growth drivers including 1) STX client share gains which we expect to begin in April (may now be July) and should drive $95mil of our $400mil TAM in FY12, 2) Ophone and Combo Chips which have been slow to start but drive $55mil of our estimated $500mil opportunity in FY12, and 3) Armada tablet wins which drive $95mil of our estimated opportunity of $200mil+ in FY12."

Gleacher & Co. reiterates a "Buy" rating on Marvell, which closed Monday at $20.28, gaining $0.24, or 1.19 percent. Gleacher has a price target on Marvell of $25.

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