Fundamental/Financial Outcomes for Marvell Technology are not Without Risk, Citi Reports

Citi reports that, “as evidenced by the 1Q12 (Apr) revenue/EPS shortfall (albeit expected), the fundamental/financial outcomes for Marvell Technology Group Ltd. MRVL are not without risk.” “But after 2 quarters of sequential revenue decline, we envision an inflection in sequential revenues in 2Q12(Jul) and y/y revenues in 4Q12(Jan); both correlate positively with share price,” Citi writes. “Helping this growth will be seasonal growth in Wifi, small but expanding SSD and TDS-CDMA related sales, and share gain in networking. “While RIMM share loss remains a concern, with the upward/total estimate revision ratio at zero, the shares at 11.2x our CY12 GAAP EPS (below the sector/S&P500 12.9x/12.5x), and in light of significant under-performance YTD (-21.5% vs. S&P550 +5.4%), we believe the shares are upward biased for the balance of 2011. We reiterate our Buy rating and $20 price target.” Marvell Technology Group closed Thursday at $14.56.