© Reuters. A Healthy Amount of Pessimism Now Price in for Marvell Technology (MRVL) – Wells Fargo
By Sam Boughedda
Marvell Technology (NASDAQ:) was upgraded to Overweight from Equal Weight with a price target of $58 by Wells Fargo on Tuesday.
Analysts said in a note to clients that the company, which develops and produces semiconductors, has a “healthy amount of pessimism now priced in.”
“In an effort to realign our ratings to take advantage of the recent market sell-off, we are repositioning our ratings so that our Overweight ratings are properly aligned with the best secular growth stories. As part of this, we upgrade shares of MRVL to Overweight from Equal Weight. Our $58 PT remains unchanged,” wrote the analysts.
Wells Fargo believes the company won’t be able to altogether avoid global macro pressures but says it is “heavily insulated from the consumer weakness that has been most pronounced in the current macro softness.”
Marvell Technology shares are down around 5% at the time of writing on Tuesday.
“When the global economy does find more sure footing, we believe MRVL’s fundamentals and share price can outperform peers’ in the broader chip sector,” the analysts concluded.
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