Posted 1/21/2024, 8:32:22 AM
Marvell Tech Downgraded to Hold on Valuation Concerns Despite Positive Share Price Momentum
- Marvell Technology is downgraded from buy to hold due to fair valuation after recent share price surge
- Company issued soft Q4 guidance last quarter due to weakness in legacy networking and carrier infrastructure units
- Valuation metrics have become less attractive with forward P/E of 47 and slew of EPS downgrades recently
- Technicals very bullish with breakout above 2022 highs to new all-time highs, upside target of $90
- Risks include high debt position, ability to achieve M&A synergies, cyclicality and commoditization of chip industry