Marvell Technology’s post-earnings decline presents no reason to shy away, according to several Wall Street analysts. For the second quarter, Marvell reported revenue of $2.74 billion, narrowly beating the FactSet consensus estimate of $2.72 billion. The company also posted earnings of 94 cents per share, slightly exceeding the Street’s consensus of 93 cents. Despite beating expectations, the results failed to impress investors, driving the stock down approximately 8% in premarket trading. Nevertheless, Bank of America, UBS, Barclays, Wells Fargo, and Citi remain firmly bullish on the semiconductor designer. Analysts at all five institutions reiterated their buy or equivalent ratings and maintained their price targets: BofA at $365 (51% upside), Barclays at $275 (14% upside), UBS at $310 (28% upside), Wells Fargo at $310, and Citi at $275. Expectations for the semiconductor firm’s quarterly report were exceptionally high, particularly given the company’s revelation last week that it would permit Google to purchase up to $12.2 billion of its shares. Compounding the pressure, Marvell’s stock had already surged 184% year-to-date. “We ignore this expectation mismatch,” wrote BofA analyst Vivek Arya. “We view MRVL as a unique growth franchise poised to accelerate its top-line growth rate from the current mid-40s YoY to the mid-50s YoY, driven by a diverse array of leading cloud customers and IP spanning compute, networking, optics, security, and storage.” Arya, along with other analysts, pointed to the anticipation surrounding Marvell’s upcoming analyst day in early October. Morgan Stanley’s Joseph Moore, who holds an equal weight rating on Marvell, noted he “would be tactically long for the investor day if the stock sells off.” He added, “Expectations miss, set up by the size and scale of the Google partnership being already mostly contemplated in the FY28 guidance – but longer term trends do support the enthusiasm we expect from the investor day.”
