Marvell Technology (NASDAQ:MRVL) news for Friday concerning a downgrade has MRVL stock taking a beating.
The Marvell Technology news comes from Cowen analyst Karl Ackerman. He doesn’t just hit the MRVL stock with a normal downgrade but instead slams it with a double downgrade. This has it dropping from its previous rating of “Outperform” to a new rating of “Underperform.”
Unfortunately for MRVL stock, the negative Marvell Technology news doesn’t just stop with a downgrade. The Cowen analyst also takes a stab at its price target. This has Ackerman cutting it from $54 per share to $18 per share, reports TheStreet.com.
Dropping MRVL stock’s price target from $54 per share to $18 per share is a 66.67% decrease. It’s also worth mentioning that this new price target is sitting 30.10% lower than the stock’s closing price of $25.75 on Thursday.
Ackerman has a few reasons for dropping this horrible Marvell Technology news on MRVL stock investors. First of all, he doesn’t see it gaining near as much profit as the rest of Wall Street. To go along with this, he also expects storage revenue, which makes up 40% of Marvell Technology revenue, to drop over the next few years.
The Cowen analyst argues that Marvell Technology won’t gain as much from the 5G boon as many investors are expecting. He contributes this to much of the expansion being in China, where the company doesn’t have a major presence.
MRVL stock closed out Friday down 6.72%.
As of this writing, William White did not hold a position in any of the aforementioned securities.