10:51 AM EST, 03/05/2024 (MT Newswires) -- Marvell Technology ( MRVL ) probably will show "enough progress" in custom artificial intelligence silicon to counter cycle concerns, Morgan Stanley said Tuesday in a report.

The company is scheduled to report fiscal Q4 financial results Thursday. Morgan Stanley projects earnings at $0.45 a share, with sales seen down 0.1% at $1.42 billion from a year earlier. The market consensus is for EPS of $0.46 on sales of $1.42 billion, according to the brokerage.

"As expected, strong AI demand from its optical business underpinned the majority of Marvell's ( MRVL ) growth last quarter," Morgan Stanley said. "However, we expect weakness in the rest of its markets to persist and offset much of this strength."

The firm raised its price target on Marvell ( MRVL ) stock to $84 from $63 and maintained the equalweight rating.

"We anticipate a slight sequential decline in April but think there will be enough positive news from custom silicon to keep the stock moving," Morgan Stanley said.

Shares of Marvell ( MRVL ) fell 1.1% in recent Tuesday trading.

Price: 78.46, Change: -0.89, Percent Change: -1.12