Marvell: Goldman Upgrades To Buy

Marvell (MRVL) shares are getting a boost this morning from Goldman Sachs analyst James Schneider , who raised his rating on the stock to Buy from Neutral and added the stock to the firm’s “Americas Conviction Buy List.” In a research report, Schneider writes that he expects the company to announce further restructuring moves and a new target financial model when it announces financial results for the January quarter on March 5, “which should lead to higher normalized earnings power during the next cycle.” Schneider also writes that he expects the company to gain share at Seagate (STX) in notebook and desktop drives. He also contends that the PC supply chain will lead the industry out of the current inventory correction, “as PCs were first to begin the correction,” noting that Marvell has about 40% revenue exposure and 60% gross margin exposure to PCs. Schneider continues to see break-even EPS for the January 2010 fiscal year, but he now sees FY ... (link)