Marvell Holds Attractive Risk-Reward, BMO Says In Upgrade

Marvell Technology Group Ltd. (NASDAQ: MRVL) received another positive endorsement Tuesday from BMO Capital Markets after Friday's upgrade by Stifel. 

The Analyst

Analyst Ambrish Srivastava upgraded Marvell Tech from Market Perform to Outperform with a $24 price target, suggesting about 34-percent upside from current levels.

The Thesis

The risk-reward in Marvell Tech shares is attractive, with the possibility of $6 upside and $2 downside, Srivastava said in a Tuesday note. (See his track record here.) 

The estimates for the company are reasonable, "especially after Marvell cleared the deck on the Cavium estimates and management has a built a track record of executing," the analyst said. 

Marvell Tech completed its acquisition of fabless semiconductor company Cavium in July.

Marvell  has a strong track record of executing, Srivastava said.

The Price Action

Marvell Tech shares have lost about 15 percent year-to-date. The stock was up 2.8 percent at $18.63 at the time of publication Tuesday. 

Related Links:

KeyBanc Previews Q3 Semi Earnings, Downgrades Integrated Device Technology On Renesas Deal

KeyBanc Starts Coverage On 10 Semiconductor Stocks, Downgrades Cypress Semi