Citi Provides Color on Marvell Technology Group, Buy

Citi provided color on Marvell Technology Group MRVL ahead of the company's Q1 earnings report. In a research report published today, Citi lowered its Q1 earnings estimates, citing similar scenarios among Marvell's competitors and the continuing problems in the HDD market. In the report, Citi states, "Marvell Technology Group reports F1Q12(Apr) earnings 5/26 after market close. Recall 04/28/11 we cut our estimates for Marvell's April quarter revenues to the low-end of Marvell's guidance ($800.2M vs. consensus $825.6M), reflecting RIMM's lowered outlook, continued challenges in the HDD market, and worse-than- expected seasonal declines in gaming. We model F1Q12 Storage revenues -9% q/q, below guidance for a low to mid single digit sequential decline, Networking flat q/q inline with guidance, and Mobile & Wireless -22% q/q inline with the outlook for a q/q decline over -20%." At the moment, Citi has a Buy rating and a price target of $20 on Marvell. On Wednesday, Marvell lost 0.18% of its value to close the day at $14.18. Its shares regained all of yesterday's losses to rise 0.49% to $14.25.