Marvell (MRVL) Gains Analyst Support as Stifel Reiterates Buy After XConn Deal

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the AI stocks currently on Wall Street’s radar.

Marvell Technology drew fresh analyst support from Stifel this week. On February 11, analyst Tore Svanberg reiterated a Buy rating on the stock with a $114.00 price target. The firm has updated its model post XConn acquisition, noting long-term UALink upside despite limited near-term EPS impact.

The data infrastructure semiconductor solutions leader announced on Tuesday that it has completed its previously announced acquisition of XConn Technologies, a provider of advanced PCIe and CXL switching silicon. The deal aims to strengthen Marvell’s UALink capabilities in the long term.

The firm has updated its model following this acquisition, incorporating its impacts. It anticipates initial revenue contributions to begin in Marvell’s fiscal third quarter of 2027, accelerating to a $50 million annualized run rate by the fourth quarter. Stifel has also increased its FY28 revenue estimate by $100 million to reflect the anticipated XConn contribution.

However, Marvell’s financials are going to be impacted in several ways. This includes an adjustment to FY27 non-GAAP operating expenses by an estimated $25 million annually and a decrease in Other Income by approximately $12 million annually because of reduced interest income from the $325 million cash outlay.

“Starting in the Apr Q, we have increased our projected diluted weighted-average shares outstanding by approx. 2.7mn shares coinciding with the equity issued to complete the acquisition. Net/net, we are adjusting our FY27E NG EPS estimate from $3.41 to $3.37, though our FY28E NG EPS estimate is being maintained at $4.90. FY29E: We are adjusting our FY29E revenue estimate from $17.58bn to $17.73bn, and leaving our NG EPS estimate unchanged at $6.68. That said, should the integration of XConn prove successful (contemplating potential tailwinds such as cross-selling), we believe there could be NG EPS upside.”

Marvell Technology, Inc. (NASDAQ:MRVL) develops and manufactures semiconductors, with a heavy focus on data centers.

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