Analysts remain solidly bullish on Marvell stock. Of 32 brokerages covering it, 28 have a Buy or Strong Buy rating, and the rest rate it at Hold. At a share price of around $46.60, the upside potential to a median price target of $54.50 is almost 17%. At the high price target of $100.00, the upside potential is 115%.
For its first quarter of fiscal 2023, Marvell’s revenue is forecast to come in at $1.3 billion, down 8.4% sequentially and by 10.3% year over year. Adjusted EPS are forecast at $0.29, down 36.3% sequentially and by 44.2% year over year. For the full fiscal year ending next January, EPS are forecast at $1.50, down 29.1%, on sales of $5.51 billion, down 7%.
Marvell stock trades at 31.0 times expected 2024 EPS, 20.2 times estimated 2025 earnings of $2.31 and 16.1 times estimated 2026 earnings of $2.90 per share. The 52-week range is $33.75 to $61.50, and Marvell pays an annual dividend of $0.24 (yield of 0.53%). Total shareholder return for the past year was negative 14.59%.
Pinduoduo
PDD Holdings Inc. (NASDAQ: PDD) operates an online marketplace called Temu that is making a play for a piece of the U.S. market and on an e-commerce marketplace in China that matches the country’s farmers and agricultural product wholesalers directly with Chinese consumers. The stock has jumped by more than 53% over the past 12 months, but like Marvell, that increase is less than half as big as it was three months ago. PDD (which changed its name from Pinduoduo in February) reports quarterly results early Friday.
The stock dropped following PDD’s earnings report in mid-March and has been unable to reverse the slide. PDD moved its headquarters from Shanghai to Ireland earlier this month, a tactical play to avoid U.S. restrictions on China-based firms. ByteDance, parent company of TikTok, moved to Dublin earlier this year. There is also the possibility that PDD will seek a separate listing for Temu in the U.S. equity market.
There are 42 analysts covering the stock, and 38 of those have a Buy or Strong Buy rating. The other four rate it at Hold. At a share price of around $62.60, the upside potential based on a median price target of $103.19 is about 63.5%. At the high price target of $138.10, the upside potential is nearly 120%.
Analysts are expecting first-quarter revenue of $4.53 billion, down 21.6% sequentially but up 20.8% year over year. Adjusted EPS are forecast at $0.63, down 47.5% sequentially and 34.0% higher year over year. For the full 2023 fiscal year, PDD is forecast to post EPS of $4.04, up 1.6%, on sales of $23.68 billion, up 25.1%.
PDD shares trade 15.5 times expected 2023 EPS, 12.1 times estimated 2024 earnings of $5.18 and 10.2 times estimated 2025 earnings of $6.16 per share. The stock’s 52-week range is $36.29 to $106.38. The company does not pay a dividend, and the total shareholder return for the past year was 54.96%.
Originally published at 24/7 Wall St.
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