Marvell Technology's (MRVL) near-term fundamentals are "robust" as its interconnect portfolio is positioned for outsized growth amid accelerating artificial intelligence infrastructure buildout, Morgan Stanley said in a Friday research report.
The positive outlook is driven by rising interconnect demand and better visibility into 2027. At the same time, the application-specific integrated circuit opportunity provides a longer-term optionality, the brokerage stated.
The company's roadmap to achieving EPS of over $5 on revenue of around $15 billion by fiscal 2028 appears more concrete, the firm said. The demand for its optical networking portfolio remains steady, with the 1.6T pluggable expected to start growing meaningfully in H2, according to the note.
There could also be potential upside to the company's custom silicon growth guidance as bookings and program visibility improve, according to Morgan Stanley.
For fiscal 2027, the company now expects EPS of $3.82 on revenue of $10.87 billion from prior $3.41 and $9.99 billion, respectively. The brokerage also adjusted its 2028 EPS estimate to $5.16 on revenue of $14.29 billion from prior $4.35 and $12.24 billion, respectively.
The brokerage said it reiterated its equalweight rating on the stock and boosted its price target to $103 per share from $95.
Price: 88.95, Change: +13.27, Percent Change: +17.54
Comments