Despite announcing management changes, Goldman Sachs analysts remain wary toward Marvell Technology Group Ltd. MRVL.
The departures of Marvell's president Weili Dia and CEO Sehat Sutardja were announced in the same press release that outlined the company's update on its delayed 10-K and 10-Q filings.
An interim position has been created until the search for adequate replacements are found. Both Dai and Sutardaj will remain on the company's board.
Goldman's Concerns Remain
Goldman analysts led by Mark Delaney commented, "The degree to which Marvell will make changes to its business and operations is unclear to us."
The analyst elaborated, "On the one hand, Dr. Sutardja as a co-founder of the company has been highly involved with several aspects of the business from both an engineering and a marketing perspective. That said, Dr. Sutardja and Ms. Dai will both remain on the board. Further, Dr. Sutardja and Ms. Dai together with family members continue to have voting rights (approximately 15 percent of shares as of the latest filings)."
Delaney concluded, "We continue to believe that the industry fundamentals in key markets for Marvell remain challenging."
However, although Goldman is hesitant, investors may be interpreting the management changes differently. The stock is up more than 11 percent early afternoon Tuesday, trading at $10.72.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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