Marvell Stock Flies To Fresh Highs After Beat-and-Raise

No less than 15 analysts raised their price targets

Deputy Editor
Dec 3, 2021 at 10:23 AM
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Marvell Technology Inc (NASDAQ:MRVL) stock is surging today, up 21.6% at $86.48, after the semiconductor company posted its third-quarter results, coming in with earnings of 43 cents per share of $1.21 billion in revenue -- topping analysts' estimates. The firm added that it expects its full-year revenue for fiscal 2023 to grow more than 30%, as demand increases and supply chain issues ease. 

The blowout results have invited plenty of bull notes, with Cowen and Company calling it a "watershed quarter with a triad of better results." No less than 15 analysts hiked their price targets, including the aforementioned Cowen and Company, which raised its objective to $100 from $66, and upgraded the stock to "outperform" from "market perform."

Heading into today, analysts were already overwhelmingly bullish, making the influx of price-target hikes all the more notable. Of the 23 in coverage, 19 said "buy" or better, and the 12-month consensus price target of $93.85 marked an 8.2% premium to last night's close. 

Marvell stock cleared its previous peak at the $76 level and opened at a fresh record high. The stock has been in rally mode since mid-May, with support from the 40-day moving average, which helped capture its pre-earnings pullback this week. Year-to-date, MRVL is up over 50%. 

Options traders are circling MRVL, too. So far, 64,000 calls and 24,000 puts have exchanged hands -- 14 times the intraday average. The most popular position is the weekly 12/3 90-strike call, where positions are being sold to open. This suggests these traders are expecting the $90 level to hold as a ceiling for MRVL until these contracts expire later today. 

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