Marvell Technology Group Ltd.
Barclays’ Blayne Curtis maintained an Equal-Weight rating on the company, while raising the price target from $12 to $14.
Restructuring & Buyback Plans
“Storage saw growth from both HDD and SSD and Networking was better than expectations,” Curtis mentioned.
The restructuring plan announced in early November has also been progressing ahead of schedule and is likely to have an impact on the Q4 performance, with the company guiding to gross margins of 58-60 percent by H2FY18.
Marvell has also announced a
Core Business Drove CQ3
Despite the outperformance during the quarter, Curtis prefers to remain on the sideline until there is greater clarity regarding the drivers of top line growth for the company, “once the current restructuring efforts have played out.”
Marvell reported its
While the Networking segment saw a decline, it performed better than expected, growing 20 percent year-on-year.
The Storage segment grew 19 percent quarter-on-quarter, driven by HDD growth, which in turn was due to demand and inventory replenishments. SSD also grew, driven by robust SATA and PCIe demand.
Gross margins were well above expectations, driven by operation efficiency and a better mix. The non-GAAP EPS came in at $0.20, ahead of the consensus.
|Oct 2016||Credit Suisse||Upgrades||Neutral||Outperform|
|Sep 2016||Susquehanna||Initiates Coverage on||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.