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On Monday, Stifel reiterated his Buy rating on Marvell (NASDAQ:) Technology Group Limited (NASDAQ:MRVL) with a price target of $72.00 as the company prepares to release its earnings results. The company expects Marvell's January quarter earnings to be in line with consensus estimates of $1.42 billion in revenue and non-GAAP earnings per share (EPS) of $0.46.
Stifel's analysis shows that Marvell's data center revenue is expected to increase significantly, growing at a rate in the mid-30s going forward. But the company also expects declines in several other parts of Marvell's business.
Carrier Infrastructure revenue is expected to decline in the mid-40s quarter-over-quarter. Similarly, enterprise networking is expected to decline by a mid-single-digit percentage going forward, and consumer revenue is expected to decline by a mid-teens percentage. Additionally, the company expects its Automotive/Industrial segment revenue to decline by approximately 20% going forward.
Stifel also predicted that Marvell's guidance for the April quarter could be slightly higher than expected, which would be $1.36 billion, representing a 4.0% decline sequentially. The company's optimism stems from the belief that Marvell's current fiscal year 2025 AI-based revenue outlook may be conservative given strong tailwinds across the company's multiple product lines. Based in part on
The reaffirmed Buy rating and price target signal Stifel's confidence in Marvell's performance and growth potential amid expected volatility in various areas of the business. Upcoming financial results will provide a clearer picture of Marvell's current position and trajectory for the next quarter.
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