Analyst Note| William Kerwin |
We’re maintaining our $62 fair value estimate for no-moat Marvell shares after the company reported strong fiscal fourth-quarter results. We think Marvell is exhibiting continued momentum for its comprehensive networking silicon portfolio, and the results and fiscal first quarter guidance aligned with our long-term thesis. Marvell’s top line is surging with rapid growth out of the cloud, 5G, and automotive ethernet markets, which is padded by strong near-term growth for its legacy markets like enterprise networking. We think Marvell’s myriad technologies are firing on all cylinders, and showing the strength of its comprehensive portfolio as the firm continues to disrupt the networking chip market. We currently view shares as fairly valued.