On Friday, Piper Sandler adjusted its outlook on NASDAQ:MRVL, lifting the stock price target to $100.00 from the previous $70.00, while sustaining an Overweight rating on the stock. The adjustment follows Marvell (NASDAQ:MRVL)'s recent earnings report, which presented results in line with forecasts but fell short of expectations for the April quarter.
The company's financial performance for the quarter was on target, yet the forecast for the upcoming April quarter did not meet analysts' projections. Despite this, Piper Sandler expressed confidence in Marvell's strategy to mitigate risks across most of its business segments, except for its data center operations.
The firm anticipates a potential rebound in several of Marvell's businesses that are currently undervalued in the April guidance. These include consumer, enterprise, networking, and carrier sectors, which are expected to see an accelerated return to growth in the second half of fiscal year 2025, corresponding to calendar year 2024.
Piper Sandler predicts that Marvell will reach a low point in the April 2024 quarter, with a slight recovery in the July quarter and significant acceleration in subsequent quarters. The firm's optimism is partly based on Marvell's data center business, which includes optical and cloud custom ASIC segments.
In summary, Piper Sandler reaffirmed its Overweight rating, indicating a positive outlook on Marvell's stock, based on the company's solid position in the data center market and the expected recovery and growth in various business sectors later in the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.