Marvell Technology Group Ltd. (MRVL) Upgraded To Buy

Analysts at Kaufman Bros. have upgraded the stock of Marvell Technology Group Ltd. (NASDAQ: MRVL) from Hold to Buy. The price target for Marvell has been raised to $25 from $20.

Analysts at Kaufman believe there is an investment opportunity in semiconductor companies levered to the PC supply chain due to the positive demand outlook for computing.

The price target on Marvell of $25 is at a multiple of 19x 2010 EPS estimate of $1.30 and 17x 2011 EPS estimate of $1.50. Analysts expect gross margins to be the biggest near term risk. Analysts believe the current valuation of Marvell is an attractive entry point.