Wells Fargo upgrades Marvell to Outperform, boosts price target to $32
Wells Fargo analyst Gary Mobley upgraded Marvell Technology Group to Outperform from Market Perform with a price target of $32, up from $25. We are at a "tipping point" in adoption of Marvell's 5G system on chip and related Ethernet integrated circuits relative to "expensive" field programmable gate arrays, Mobley tells investors in a research note. As such, he believes Marvell should continue to experience "robust" 5G-basestation-related sales to Nokia and Samsung for the balance of 2019 and into 2020. Further, recent reacceleration in data center capex should bode well for the company's OCTEON/NITROX and Fibre Channel sales, which represents a more near-term catalyst, adds the analyst.