Credit Suisse First Boston raised its estimates and target on Marvell Technology Group (MRVL).
Analyst Michael Masdea says the 19-cent first-quarter earnings per share was 2 cents above consensus on higher revenues and gross margin. He says Marvell continues to execute in a tough end-market environment on growth in share gains, and ramping new product areas, including wireless local area network, storage system Serial ATA, and GbE Infrastructure chips.
Masdea notes Marvell upped the $710 million to $740 million fiscal 2004 (Jan.) revenue guidance to a range of $760 million to $790 million, to reflect improved visibility on new infrastructure designs, and exisiting production ramps. Masdea raised his $719 million fiscal 2004 revenue estimate to $774 million, and raised the $868 million fiscal 2005 estimate to $943 million.
He also raised the 80 cents fiscal 2004 earnings per share to 89 cents, and raised the $1.00 fiscal 2005 estimate to $1.11. He upped the $24 target to $36, and is keeping his outperform rating.