Marvel Technology (MRVL) edged 1.7% higher in premarket trading Friday after Citi Research analysts named MRVL (NASDAQ:MRVL) as their Top Pick.
The stock was already rated as Buy at Citi.
The move comes as Citi turns optimistic on MRVL’s “stock setup in 2024,” citing “continued AI optics growth, layering of custom ASIC AI project sales, and bottoming out of non-cloud markets like enterprise networking and carrier.”
Simultaneously, analysts at Citi lowered the Buy-rated Nvidia (NASDAQ:NVDA) to #2 in the wake of the company’s presentation at the Consumer Electronics Show (CES) and the conclusion of their positive catalyst watch.
Moreover, Universal Display Corporation’s (NASDAQ:OLED) stock was downgraded to Neutral on valuation, though the analysts lifted its price target from $161 to $180.
Citi views OLED’s risk-reward as “balanced” while “valuation appears full with P/E ~37x above the 3-year average of 32x.”
“This, combined with Citi’s recent concerns on China OLED materials domestic manufacturing efforts to gradually ramp this year (see report), warrants our -6% OLED FY2024E estimate sales revision,” Citi wrote in the note.
Meanwhile, Sell-rated Qorvo (NASDAQ:QRVO) and Skyworks Solutions (NASDAQ:SWKS) remain Citi’s least preferred stock picks due to “increased RF android competition and China substitution risk.”
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