MKM Partners analyst Ruben Roy kept his Buy rating and $27 price target on Marvell, saying he remains positive on the company after its recent investor meeting where the management forecast annualized growth of 6%-8% for the next several years. The analyst adds that the company is likely being conservative with its guidance given the "various upside drivers" for Marvell that include AI and 5G technologies. Roy also points to Marvell's discount valuation of 13-times forward earnings relative to the 16.3-times peer group average.

After CNBC reported that Mellanox (MLNX) has hired an advisor to explore strategic alternatives, including a possible sale, Benchmark analyst Gary Mobley said it is difficult to verify the story but he believes the company would "represent a prized M&A target for a host of buyers," including potentially Nvidia (NVDA), Intel (INTC), Broadcom (AVGO), Marvell (MRVL) and "even" IBM (IBM). The analyst, who added that Mellanox's "initial apathy" toward prior M&A talks with Marvell was part of the reason Starboard got involved, keeps a Buy rating on Mellanox shares with a $100 price target.

MKM Partners analyst Ruben Roy kept his Buy rating and $27 price target on Marvell, saying that in spite of the disappointing performance of its stock price year-to-date, the stock remains one his his "top ideas". The analyst warns that the stock may be heading for more near-term headwinds given the recent NAND memory price declines with added potential for demand shifts from HDDs to SSDs. However, Roy also sees Marvell valuation reflecting those risks with the stock trading at about 10-times forward earnings relative to its peer group average of 15-times. The analyst believes that the company remains well-positioned longer term, with new market opportunities positioning it for annualized revenue growth that's in line with its target of 6%-8%.