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Semiconductor maker Marvell Technology expects the headwind to ease later in fiscal 2024.
Remusrigo/Dreamstime
semiconductor maker
miracle
Tech fell during early trading on Friday after analysts lowered price targets for the stock.
Shares fell 8.6% in premarket trading to $42.24.
Piper Sandler
lowered the share price target from $55 to $50. KeyBanc has changed the price target from $65 to $60. Both maintained an Overweight rating on the stock.
The company had reported earnings on Thursday that were in line with expectations for the last quarter, but the outlook was disappointing. Revenue in the quarter ending April will be $1.3 billion, lower than expected. Marvell (ticker: MRVL) said inventory corrections and product mix changes impacted its Q1 sales and gross margin outlook.
“We expect these headwinds to ease later in fiscal 2024, as inventory levels normalize and Marvell-specific growth engines accelerate,” said Matt Murphy, CEO of Marvell.
Write to Brian Swint at [email protected]
