Marvell: Amtech Sees Beat and Raise Quarter

Adding to the recent upbeat notes (Friedman Billings on Aug. 11, Avian Securities on Aug. 7) on chip-maker Marvell Technology (MRVL) in the last week or so, American Technology research analyst Shaw Wu today reiterated a “Buy” rating on the stock and a price target of $21, saying the company should exceed consensus estimates for both revenue and earnings when it reports a week from Thursday, August 28.

Like Friedman’s Craig Berger, who expects $836 million in sales and 23 cents per share for the quarter, Wu is looking for revenue at the high end of the company’s $830 million to $840 million forecast range, and profit at or above the 21 cents the Street is estimating. He sees margins coming down slightly from the prior quarter, at 51.5% of revenue, but up from last year’s 48%-49% average range.

Moreover, Wu’s “supply chain checks into its production, ODM, and OEM a