Marvell Technology Inc (MRVL)

[lecorb]

S&P CAPITAL IQ KEEPS HOLD OPINION ON SHARES OF MARVELL TECHNOLOGY GROUP

9:08 am ET September 11, 2015 (S&P Capital IQ) Print
We cut our 12-month target price by $5 to $10, shifting to price-to-sales below peers given limited earnings visibility. MRVL announces an audit review related to 7%-8% of sales recognized in the Jul-Q that would have been received/earned in the Oct-Q and is now no longer available for receipt for that quarter. MRVL offers preliminary Jul-Q revenue of $711M (Capital IQ consensus $722M) and GAAP loss of $0.74. We think the audit review will act as an overhang on shares and believe MRVL will see prolonged softness within its business given challenges in the hard disk drive space.