MRVL Stock prices were down on Friday, trading at $37.72 as of 12:48 PM EDT.
Despite a hard global economy, MRVL Stock (NASDAQ:MRVL) still has a “compelling value proposition” at these prices, according to a Friday report from Bank of America. This is despite the fact that shares have been down more than 56% year to date.
MRVL Stock (NASDAQ:MRVL) is currently rated as a buy by analyst Vivek Arya, who also has a $65 price objective on the stock. He said that the firm has an “attractive, resilient” mix of revenue, with most of it coming from infrastructure and very little from consumers. However, shares have lagged the larger Philadelphia Semiconductor Index (down 43% year to date) and have performed better in line with Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), both of which have greater exposure to the PC and broader consumer industries.
Arya reduced his 2023 sales forecast to roughly $6 billion, below the previous view of $6.9 billion and below the consensus of $7.1 billion, but the company’s expertise in the cloud may help maintain growth positively, albeit somewhat.
In a letter to clients, Arya said, “We expect MRVL’s cloud-optimized wins to offer double-digit growth in data centers, but that could be offset by double-digit reductions in corporate networking where current year’s 40%+ growth rate this year are unsustainable.” The analyst continued by saying that he anticipates Marvell (NASDAQ:MRVL) to gain from the rollout of 5G in the US and India, as well as from gains in carrier market share, to fuel growth.
Arya pointed out that until at least the first quarter of 2019, Marvell (NASDAQ:MRVL), Nvidia (NASDAQ:NVDA), and AMD (NASDAQ:AMD) are “exposed” to any headlines and capital expenditure announcements from cloud and enterprise customers, with the correction likely shifting from consumer markets to enterprise and data centers.
Arya continued, “However, once consensus reflects that scenario (likely during the upcoming [third-quarter] earnings season), we believe the stock can recover as valuations, especially for MRVL, appear compelling at 18x/14x [2023 and 2024 estimates] compared to the company’s trailing three and five-year median PE of 32 and 26, respectively.
MRVL Stock Projections
Citi lowered its earnings estimates for Marvell (NASDAQ:MRVL) and Nvidia (NASDAQ:NVDA) on Tuesday. They did this because they were worried that the worsening global economy would lead to fewer sales of data centers.
Nvidia Stock And Others Like Marvell, AMD, Broadcom, And Credo Are A Buy According To BofA
Featured Image- Megapixl @ Michaelvi
Author Jowi Kwasu 
