On Friday, Stifel maintained a Buy rating on Marvell (NASDAQ:MRVL) Technology Group Ltd. (NASDAQ:MRVL) stock and increased the shares target to $90 from $86.
The firm's decision comes after Marvell's April quarter results showed revenue and non-GAAP earnings per share (EPS) that were slightly above Stifel's estimates. The company's data center and artificial intelligence (DC/AI) revenue continued to outperform expectations.
Marvell's July quarter outlook was also raised, predicting a 3.5% increase compared to Stifel's estimates, as the company sees stabilization across all other end markets.
Stifel noted that the AI revenue floor is being raised and that their previous forecast of AI-related revenue reaching over $1.5 billion in FY25E could be easily exceeded.
The analyst highlighted Marvell's proactive stance in driving innovation, with the introduction of new products such as the 2nm process node and the PCIe product portfolio unveiled earlier in the day. These developments support the company's growth trajectory in the AI sector.
Stifel's increased confidence in Marvell's performance for the second half of FY25E and the full FY26E was a factor in the decision to raise the 12-month price target. The new target is based on a 12.0x calendar year 25E enterprise value/sales multiple.
The company's strategic moves and positive financial outlook are key elements supporting the analyst's optimistic view on Marvell's stock.
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