Marvell Technology Group (MRVL) To Benefit From China 3G Growth

Broadpoint AmTech analysts Mark McKechnie and Stephen Patel reiterated their Buy rating for shares of Marvell Technology Group (Nasdaq: MRVL), with a price target of $25.

The analysts said that Marvell Technology Group stands to benefit from the March addition of 3.4 million China Mobile Limited (NYSE: CHL) 3G subscribers.

The addition of 3.4 million 3G subscribers represented a drastic increase after 5 months of relatively small increases.

The Broadpoint AmTech analysts wrote, "MRVL is the leading vendor for TD-SCDMA “O-Phones” into China Mobile. We look for this to accelerate in 2HCY10, but have only included $30mm in our FY11 (February) forecast, which would represent just 2.5mm units at a $12 ASP. We also took RIMM’s comments that the 9700 Bold2 was the best selling smartphone in Europe for the first 2 weeks of April and the Pearl 3G announcement as positive for MRVL, as its chips are in both. Reiterate Buy for MRVL."