Marvell Technology Inc (MRVL)

[sungolfer]

09:09 MRVL Marvell: Guidance could be slightly light, but believe bad news is already priced in - Amtech (16.96 )

Amtech notes that MRVL is due to report its April quarter results this Thursday after the close. Based on the firm's analysis, they anticipate revenue near the midpoint of its guidance range of $640-650 mln (they are at $645 mln vs. consensus of $646.5 mln). Due to the ongoing options investigation, MRVL will not likely report full financials; however, they believe restatements will be within a few weeks with the internal options investigation completed. The firm is buyers of MRVL shares at these levels as they find the risk-reward favorable at 17.5x CY08 EPS with bad news priced in, declining inventory, and improving fundamentals. They see upside to $24 based on a 25x multiple on their CY08 EPS of $0.97.