Marvell $MRVL Stock, Is It Too Late To Buy?

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MRVL stock spiked more than 17% higher on a gap up open on December 3, 2021, after the company reported beats on earnings and revenue. Is it too late to chase the stock higher? The answer is YES.

MRVL Stock Chart

The stock got too far ahead of itself with a flurry of analyst price target hikes after the beats. Here are a few of those analysts’ commentaries.

Marvell price target raised to $108 from $85 at Craig-Hallum

Craig-Hallum analyst Christian Schwab raised the firm’s price target on Marvell to $108 from $85 and keeps a Buy rating on the shares following the company’s better than expected Q3 earnings results and Q4, FY23 guidance. Schwab highlighted management’s commentary that “demand remains very strong and continues to outpace supply” and that management is “confident they have secured the necessary supply to meet 30%+ revenue growth next year.” The analyst believes Marvell is “positioned to remain one of the strongest growing companies of meaningful scale” in the semiconductor space.

Marvell price target raised to $115 from $90 at B. Riley

B. Riley analyst Craig Ellis raised the firm’s price target on Marvell Technology Group to $115 from $90 and kept a Buy rating on the shares. The Q3 beat shows robust product cycle, operating, and opex execution, Ellis tells investors in a research note.

Marvell price target raised to $100 from $80 at Stifel

Stifel analyst Tore Svanberg raised the firm’s price target on Marvell to $100 from $80 and keeps a Buy rating on the shares following an “impressive beat & raise” quarterly report that featured record profitability. He identifies Marvell as a top large-cap pick. It is a unique, full-service supplier of essential “cloud-optimized silicon” that enables critical product differentiation for data infrastructure customers.

Marvell price target raised to $100 from $75 at Needham

Needham analyst N. Quinn Bolton raised the firm’s price target on Marvell to $100 from $75 and kept a Buy rating on the shares. The company’s Q3 results were “impressive,” and its guidance was well above expectations due to robust demand across all end markets, the analyst tells investors in a research note. Bolton further cites Marvell’s FY23 revenue growth outlook of 30%, adding that while supply chain issues remain, the management has highlighted how the team’s ability to collaborate with suppliers has improved the procurement of crucial components.

Marvell price target raised to $98 from $85 at BMO Capital

BMO Capital analyst Ambrish Srivastava raised the firm’s price target on Marvell to $98 from $85 and kept an Outperform rating on the shares. The analyst cites the company’s Q3 earnings beat and FY23 guidance calling for a growth of about 30% amid “robust demand” as Marvell ramps wins into the data center and carrier infrastructure markets. Srivastava is also optimistic about the company’s ability to secure enough supply at the front end, with demand coming from both the acquisitions and the organic business.

Marvell Fundamental Analysis

Marvell stock is just too expensive as of December 5, 2021. The stock appears to have overshot to the upside because of the bullish analyst hype. Even though Marvell has excellent revenue and earnings growth, it’s already priced in. With a Price/Earnings Ratio of 71.44, MRVL is valued higher than the industry average, at 27.73. 86% of the companies listed in the same industry are cheaper than MRVL. When comparing the Enterprise Value to EBITDA ratio of MRVL to the average industry ratio of 20.37, MRVL is valued more expensive than its industry peers. 94% of the companies listed in the same industry are valued cheaper. Click here to sign up for email alerts on when MRVL stock is a better fundamental buy.

VIDEO MRVL Stock | Tech Stocks to Buy Now? | Marvell Technology Stock Analysis

Everything Money gave their opinion on MRVL stock on November 15, 2021.

MRVL Stock | Tech Stocks to Buy Now? | Marvell Technology Stock Analysis
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