Marvell slips even as B. Riley upgrades, says 'new phase of growth' coming
Sundry Photography/iStock Editorial via Getty Images
Marvell Technology (NASDAQ:MRVL) shares slipped fractionally in early market trading on Friday even as investment firm B. Riley upgraded the semiconductor company, stating that the company is ushering in a "new phase of growth."
Analyst Craig Ellis raised his rating on Marvell Technology (MRVL) shares to buy from neutral and boosted his price target to $75 from $60, noting that the company is likely to see an eventual rise in revenue growth from enterprise networking and storage, along with the expected four-fold rise in data center cloud revenue between 2022 and 2024 due to artificial intelligence.
"So, a new and powerful phase of growth seems at hand," Ellis wrote in a investor note.
In addition, Ellis said that Marvell (MRVL) could see a rise in margins and operating cash flow from recent "fresh self-help benefits."
"In sum, we believe weâve missed Juneâs cyclical bottom but see dramatic multi-year gains still ahead, for which we suggest investors start to position," Ellis explained.
Marvell (MRVL) is slated to report second-quarter results after the close of trading on August 24. A consensus of analysts estimate the company will earn 32 cents per share on $1.33B in revenue.
Analysts are largely cautious on Marvell (MRVL). It has a HOLD rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates MRVL a HOLD.

More on Marvell Technology Group

Marvell Technology: An Overview Of Current Positioning And Industry Dynamics
Marvell: AI Tailwinds Sustain, Growth Ahead, A Buy Into Earnings
Marvell Technology And The AI Hype Cycle
Marvell Technology: Huge Potential Margin Expansion Opportunity
Sizing up the AI playing field: All stocks may not be equal