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Research Alert: CFRA Downgrades Opinion On Shares Of Marvell Technology To Buy From Strong Buy
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Research Alert: CFRA Downgrades Opinion On Shares Of Marvell Technology To Buy From Strong Buy
Aug 29, 2025 5:41 AM

08:25 AM EDT, 08/29/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target at $90, based on a below-peers P/E of 20.8x our CY 27 EPS estimate. After posting Jul-Q results that were largely in line, we keep our FY 26 (Jan.) EPS estimate at $2.80 and tweak FY 27 to $3.51 from $3.59. We start FY 28 at $4.33. We acknowledge that the lack of transparency on key customer programs along with cited custom silicon lumpiness are concerning and despite AI prospects, we have lower conviction on out-year EPS estimates. MRVL's custom silicon business is seen declining sequentially in the Oct-Q, causing the entire Data Center segment to be flat (offset by networking growth), as it sees certain custom programs as being in a digestion phase. Still, it introduces uncertainty amid rising competitive pressures and breaks the previous trend of uninterrupted sequential growth. We think this also raises questions about the status of specific 3nm follow-on programs while Microsoft's custom silicon opportunity gets pushed out. Valuation and rising AI TAM keeps us constructive.

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