MRVL

Marvell Technology Inc

TMT


Presented:05/09/2024
Price:$67.68
Cap:$58.61B
Current Price:$79.41
Cap:$68.78B

Presented

Date05/09/2024
Price$67.68
Market Cap$58.61B
Ent Value$62.15B
P/E RatioN/A
Book Value$17.14
Div Yield0.35%
Shares O/S866.00M
Ave Daily Vol13,686,754
Short Int4.23%

Current

Price$79.41
Market Cap$68.78B
Marvell Technology, Inc. engages in the design, development, and sale of integrated circuits. Its products include data processing units, security solutions, automotive, coherent DSP, DCI optical modules, ethernet controllers, ethernet PHYs, ethernet switches, linear driver, PAM DSP, transimpedance amplifiers, fibre channel, HDD, SSD controller, storage accelerators, ASIC, and Marvell government solutions. It operates through the following geographical segments: United States, Singapore, Israel, India, China, and Others. The company was founded by Wei Li Dai and Pantas Sutardja in 1995 and is headquartered in Wilmington, DE.

Publicly traded companies mentioned herein: Marvell Technology Inc (MRVL), Microsoft Corp (MSFT)

Highlights

The presenter is long shares of Marvell Technology Inc (MRVL), expecting a strong content cycle next year just as the underperforming parts of the business (e.g., storage) recover. His bullish outlook on the recovery and content cycle lead to his EPS forecast of $3 next year compared to the Street's $2.41. Underwriting a 30x valuation on that $3 estimate, in line with the current valuation, creates his $90 price target and strong upside from the current $68 share price. He also considers the risk/reward setup attractive, seeing downside to just $60 per share based on a 20x multiple on his $3 EPS. 

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Idea Discussion

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