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.

F5 Networks (NASDAQ:FFIV) Has One of Best Business Models in Tech Industry Says Gleacher

Gleacher said they believe F5 Networks (NASDAQ:FFIV) has one of the best financial models in the tech industry, but recommend investors stay on the sidelines for now, based on concerns over risk versus reward.

"We believe F5 has one of the best financial models in the tech industry driven by its value-added products, but shares are fully valued at current levels. In our view, the strategic position of F5 in the data center is undeniable. Other than VMWare (NYSE:VMW), we have difficulty trying to identify another enterprise infrastructure provider with as many secular tailwinds as FFIV currently enjoys (e.g., mobile Internet traffic growth, data center consolidation, virtualization, HTML5 browser as the app, etc). As voice, video and data traffic proliferates, F5 is increasingly viewed as the "strategic point of control" in the unified IP network with its layer 4-7 expertise. However, despite all these fundamental positives, we still recommend investors remain on the sidelines due to unfavorable risk/reward profile," Gleacher said.

Gleacher maintains a "Neutral" rating on F5, which closed Wednesday at $115.01, losing $0.94, or 0.81 percent.