CSFB Raises Marvell Technology Outlook

Analyst Michael Masdea says the chipmaker boosted its guidance for fiscal 2004 revenue, amid improved visibility

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.

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