Marvell (MRVL) Will Pop on Research In Motion's (RIMM) Earnings

FBE has added Marvell Technology (MRVL), a global semiconductor provider, to its top picks list. FBR sees strength in MRVL because of Research In Motion (RIMM). RIMM reports Wednesday evening, which FBR believes should be positive for MRVL too:

Analysts generally expect strong results and guidance from RIMM, likely a 7%-9% customer of Marvell. Further, we think the new Blackberry ‘Bold’ and the not yet announced touchscreen ‘Thunder’ will continue to drive unit volumes nicely higher over the next year, especially given RIMM’s still favoured status in the enterprise arena, a positive for

RIMM vs. Apple (AAPL)? Who cares? FBR thinks 3G iPhone will be super successful, but there is still room for meaningful RIMM unit growth for all:

Some investors worry that the 3G iPhone will take business away from RIMM’s Blackberry device volumes. We think the 3G iPhone will be a smash hit with most developed (and some less developed) countries ready to sell these Smartphones. That said, we believe the Smartphone market is growing so rapidly that there is plenty of opportunity for meaningful growth at Apple, RIMM, Nokia, and others. Market forecasters suggest the Smartphone market could grow to 500 million units per year in four or five years time (versus Apple’s 2008 iPhone forecast of 10 million units). Also, while some enterprises may adopt the iPhone, these organisations generally move very slowly in evaluating and adopting new equipment, suggesting that meaningful enterprise penetration may not begin until 2009 or 2010.

Freidman Billings reiterates OUTPERFORM on Marvell (MRVL), target price $23.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at