Analyst Joseph Moore of Morgan Stanley maintained a Hold rating on Marvell (MRVL – Research Report), retaining the price target of $90.00.
Joseph Moore has given his Hold rating due to a combination of factors related to Marvell’s recent strategic decisions and market positioning. The sale of Marvell’s Automotive Ethernet business to Infineon for $2.5 billion is seen as a positive move, providing the company with increased financial flexibility. However, this segment only contributes a small portion of Marvell’s revenue and is not a strategic focus, as the company is more concentrated on AI opportunities in networking and ASICs.
While the divestiture is beneficial, it does not significantly alter Marvell’s gross and operating margins, as the automotive business aligns closely with the corporate average. The transaction is viewed as a strategic portfolio management decision, showcasing Marvell’s strength in acquisitions and divestitures. Despite these positives, the Hold rating reflects a cautious stance, as the market remains focused on Marvell’s data center business, which is expected to constitute a significant portion of their revenue in the coming years.
Based on the recent corporate insider activity of 79 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MRVL in relation to earlier this year.