Marvell (MRVL) blew away both revenue and EPS estimates yesterday, reporting $804 million (vs $784 est) and $0.24 (vs. $0.13). Friedman is raising its price target after the beat, citing MRVL’s strong Q1 results:
strength in storage, Wi-Fi, and cellular-related chip businesses, fuelled by a robust global PC market and by strength at top cellular customer RIM ahead of its Blackberry ‘Bold’ launch in 2Q.
FBR also thinks that MRVL is attractive on a valuation basis:
Valuation still attractive with plenty of upside left; raising target to $23. Shares of MRVL just got cheaper, even though the stock is trading up 16% in the after-hours market to $16.40. MRVL is trading at 17x and 14.5x our calendar 2008 and 2009 EPS estimates, respectively, adjusted for net cash and interest income. We think the stock can work towards a 22x multiple of our 2009 EPS estimate, which would drive a $23 share price, and as such, we are increasing our price target from $19 to $23.
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