Marvell Technology shows relatively strong fundamentals and is coming back to attractive prices.
From a fundamental viewpoint, Surperformance ratings highlight the strengths of the company in terms of profitability, finances and its stock’s potential. In facts, net margin is expected around 10% this year for revenues increasing by more than 10% at USD 3.9 billion. Moreover, the group should finish the current fiscal year with nearly 2 billion of cash. Analysts keep revising upward revenues and EPS estimates and their average target price offers a 28% potential.
The stock has been severely penalized during the last sessions and is now close to a strong support level. Therefore, a rebound on this level can be anticipated with a return towards USD 14.2, as technical indicators show an oversold situation.
In consequence, timing seems perfect to take a long position on Marvell Technology close to USD 13.15. The target will then be USD 14.2 and by extension USD 14.64. However, a stop loss will be placed under the support currently tested in case of further correction.
Marvell Technology Group Ltd specializes in designing and marketing integrated communications and storage circuits intended for manufacturers of high-speed network equipment, hard disks, and consumer electronics. Net sales break down by area of application as follows:
- data centers (40.7%): artificial intelligence systems, data storage systems, Ethernet switches, servers, interconnection systems, etc.;
- enterprise networks (23.1%): routers, Ethernet switches, wireless access points, network equipment, workstations, etc. for campuses, small and medium-sized enterprises;
- telecom network infrastructures (18.3%): access multiplexers, Ethernet switches, optical transport systems, routers, wireless radio network access systems, etc.;
- consumer electronics (11.9%): broadband gateways and routers, game console systems, home data storage systems, home wireless access points, personal computer systems, printers and receiver terminals;
- automotive and industrial (6%): advanced driver assistance systems, autonomous vehicle systems, embedded network systems, industrial Ethernet switches, video surveillance systems.
Net sales are distributed geographically as follows: the United States (11.7%), China (42%), Malaysia (6.6%), Thailand (6.6%), Singapore (5.6%), Taiwan (4.9%), Japan (4.4%), Finland (3.2%), Philippines (2.9%) and other (12.1%).
MARVELL TECHNOLOGY GROUP LTD 
