On Monday, Stifel reiterated a Buy rating on Marvell (NASDAQ:MRVL) Technology Group Ltd. (NASDAQ:MRVL), with a price target of $72.00, as the company prepares to release its financial results. The firm anticipates that Marvell's January quarter earnings will align with the consensus estimates, which predict revenue of $1.42 billion and non-GAAP earnings per share (EPS) of $0.46.
The analysis by Stifel projects that Marvell will see a significant increase in its Data Center revenue, expecting it to rise in the mid-30s percentage range sequentially. However, the firm also forecasts declines in several other sectors of Marvell's business.
Carrier Infrastructure revenue is projected to fall in the mid-40s percentage range quarter over quarter. Similarly, Enterprise Networking is expected to see a mid-single-digit percentage decline sequentially, with Consumer revenue anticipated to drop in the mid-teens percentage range. Additionally, the firm predicts that the Auto/Industrial revenues will decrease by approximately 20% on a sequential basis.
Stifel also predicts that Marvell's April quarter guidance might be slightly higher than their estimate of $1.36 billion, which would represent a 4.0% decrease from the previous quarter. The firm's optimism is partly based on the belief that Marvell's current AI-based revenue guidance for the fiscal year 2025 could turn out to be conservative, considering the strong tailwinds present across the company's multiple product lines.
The reaffirmed Buy rating and price target suggest Stifel's confidence in Marvell's performance and its potential for growth amidst the anticipated fluctuations in different segments of its business. The forthcoming financial results will provide a clearer picture of Marvell's current standing and its trajectory for the upcoming quarter.
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