(Marvell) Several analysts have upgraded Marvell Technology Inc. stock after the company raised its growth target to 15-20% from the initial 10-15%.
Marvell also upgraded its gross margin target to between 64-66% from 63-65% last year. It upgraded its long-term operating margin target to between 38-40%, from less than 35% last year.
The company’s CEO says that Marvell is on track to increase its cloud revenue to $800 million by 2025-2026, compared to $400 million expected in fiscal 2024.
The company projects to grow cloud, 5G, and auto to $1.5 billion and the rest of infrastructure above market at $2.2 billion. Consumer growth is expected to be 0.6 billion in the 2024 calendar year.
Marvell expects its market segment to grow between $20-$30 billion between calendar years 2021 and 2024.
Following the upgraded forecast, most analysts have assigned a “buy” rating on MRVL. Credit Suisse is the most bullish, with an outperform price target of $85 from $70.
Stifel Nicolaus has issued a price target of 80, while Jefferies upgraded its price target to $82 from $78.
MRVL: NASDAQ is up +4.32%.
