Latest news with #KevinCassidy
Globe and Mail
20-05-2025
- Business
- Globe and Mail
Can Marvell Technology Stock Hit $140 in 2025?
A leader in the semiconductor industry helping to power cloud computing and artificial intelligence, Marvell Technology (MRVL) has been a volatile name in recent quarters. However, some analysts are growing increasingly bullish on Marvell stock, with Rosenblatt Securities currently holding the Street-high price target of $140 for MRVL stock. Let's dive into what to make of this price target, and what may contribute to Marvell (currently trading at just under $61 per share) to head toward this incredible level. Understanding Rosenblatt's Street-High Target Rosenblatt Securities analyst Kevin Cassidy reiterated his Street-high price target on Marvell in early April. At the time, Marvell had just entered into an agreement with Infineon (IFNNY) to sell its automotive ethernet business for $2.5 billion. Cassidy wrote in a note that the deal makes 'good sense for both companies' and occurred at a 'good price.' He also maintained a 'Buy' rating on the stock. With a target of $140, Cassidy is calling for upside of more than 130% from here. Even the average price target of $105.41 implies more than 72% upside potential. Its Street-low price target of $60 is below its current trading price, indicating that not everyone on Wall Street is so incredibly bullish on shares. That said, any time I come across a particular company with a price target that is more than twice its current stock price, it is a company worth diving into. Let's take a look at what may be supporting this high price target, and how realistic it is for Marvell to achieve over the next year. What's Driving Such Impressive Price Targets? Marvell's stock price performance has been bumpy over the past year, to put it lightly. Shares are down 18% over the past 52 weeks, and are down 45% in the year to date. However, in the short term, shares appear to be rebounding and are up nearly 17% in the past month. One of the major problems Marvell has faced in 2025 is that the company's recent results weren't met with investor enthusiasm. The company did post strong growth and exceeded its own guidance midpoint in the past quarter. Unfortunately, as has been the case with many other highly valued growth stocks, a beat sometimes isn't good enough. Investors generally tend to expect more than what Wall Street analysts project on the revenue and earnings growth front. So, when Marvell posted record revenue of more than $1.8 billion (27% year-over-year) and blew away its own guidance, some investors are left wanting more. Importantly, its guidance for $1.88 billion in revenue in the first quarter of its fiscal 2026 missed estimates of $2 billion. I think what's most notable about the company's recent results is the reality that around 75% of the company's revenue is derived from its data center activity. While some have forecast a growth slowdown in data center-related spending, we haven't seen any such slowdown materialize on the Marvell side, with the company's data center business seeing incredible 78% revenue growth this past quarter. Looking at the company's valuation multiples above, even with the stock being cut roughly in half since January, Marvell still trades at a multiple of around 9.6 times sales and 30 times forward earnings. At a revenue growth rate of around 27%, these multiples are attractive. But given the company's negative profit margin and its very high price-cash flow ratio, there are some fundamental issues causing value-conscious investors to avoid MRVL stock here. How Likely Is It That Marvel Does Go Above $140 Per Share? In my view, a lot will certainly have to go right in order for Marvell to achieve this extremely high price target. Yes, there are plenty of catalysts investors have to watch that could spur a price surge toward the $140 level, and this is a stock that was certainly making progress on this trajectory up until January, trading above $130 per share. However, its recent dip remains concerning, and it's clear that highly valued stocks are coming under more scrutiny right now. In this environment which I'd characterize as still risk-off, a rotation toward more defensive names may negatively impact Marvell. Thus, while I do think this AI and cloud play does have significant upside potential over the long term and wouldn't be surprised to see this stock break through the $200 level at some point in the next five years, I think this $140 price target is a bit aggressive, at least right now.
Yahoo
06-05-2025
- Business
- Yahoo
Navitas GaN Adoption Is Slower Than Anticipated: Analyst
Rosenblatt analyst Kevin Cassidy revised estimates for Navitas Semiconductor Corporation (NASDAQ:NVTS) following the first quarter results reported on Monday. The company reported an adjusted EPS loss of 6 cents, which was in line with estimates, and sales reached $14.02 million, exceeding the estimated $13.99 million. Navitas Semiconductor expects second quarter sales of $14 million – $15 million vs consensus of $14.95 million. The analyst says that the results and guidance for the second quarter of 2025 were largely in line with expectations. The analyst adds that the adoption of Gallium Nitride (GaN) technology in end markets beyond handsets continues to be slower than anticipated and is still working through existing Silicon Carbide (SiC) inventory. The analyst writes that the company is securing new design wins, with particular optimism on the recently launched GaN bi-directional diode switch. Cassidy expects production ramps for solar microinverter applications in the second half of 2025. While tariffs are not currently a direct impediment to demand, management expressed caution regarding the second half of 2025 and has contingency plans in place for China-for-China and USA-for-USA, adds the analyst. For FY25, the analyst estimates revenues of $60.5 million (vs. consensus of $74.5 million) and an adjusted EPS loss of $0.19 (vs. consensus loss of $0.16), down from the earlier estimate of $75 million and a loss of $0.16, respectively. For FY26, Cassidy continues to estimate revenue of $110 million and an adjusted EPS loss of $0.07. Price Action: NVTS shares closed lower by 4.74% at $1.91 on Tuesday. Read Next: Photo via Shutterstock Latest Ratings for NVTS Date Firm Action From To Feb 2022 Rosenblatt Initiates Coverage On Buy Feb 2022 Needham Initiates Coverage On Buy Dec 2021 B of A Securities Initiates Coverage On Neutral View More Analyst Ratings for NVTS View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Navitas GaN Adoption Is Slower Than Anticipated: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
