By Sam Boughedda
A Benchmark analyst assumed coverage of Marvell Technology (NASDAQ:MRVL) with a Buy rating and a $70 per share price target on Friday.
The analyst said in a note to investors that Marvell has been a transition story over the past several years under the guidance of an essentially new management team.
"While storage remains a much smaller end market for MRVL, the company's primary focus is on becoming a leader in the infrastructure end markets, which now account for 88% of total revenue. A number of non-core asset divestitures, coupled with multiple strategic acquisitions, have accelerated MRVL's exposure to the attractive infrastructure end markets," he wrote.
The analyst described the company's leading-edge solutions as the "essential building blocks of the infrastructure technology of today and for the future."
"Trusted by the world's leading technology companies for 25 years, the company moves, stores, processes and secures the world's data with semiconductor semi-custom solutions designed for its customers' current needs and future ambitions. Through a process of deep collaboration and transparency, MRVL is changing the way tomorrow's enterprise, cloud, automotive, and carrier architectures transform, grow, and improve," added the analyst.
Despite the analyst's positive comments, Marvell shares are down 3.8% Friday.