Will This Upgrade Help Marvell (MRVL) Stock Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Marvell (MRVL) was upgraded to "market perform" from "underperform" by JMP Securities on Wednesday.

Shares of Marvell gained 1.9% to $13.64 in morning trading.

The analyst firm also its EPS estimates for the chipmaker through 2016. JMP expects Marvell to report earnings of $1.20 a share for 2015, up from its previous estimate of $1.17 a share. For 2016 JMP estimates earnings of $1.05 a share, up from its prior estimate of $1.00 a share for the year.

The upgrade is due to "accelerating China Mobile 4G LTE subscriber additions, and the announcement that the Xbox One gaming console is due to go on sale in China on September 29," analyst Alex Guana wrote.

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Separately, TheStreet Ratings team rates MARVELL TECHNOLOGY GROUP LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate MARVELL TECHNOLOGY GROUP LTD (MRVL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MRVL's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 19.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MRVL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.53, which clearly demonstrates the ability to cover short-term cash needs.
  • MARVELL TECHNOLOGY GROUP LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MARVELL TECHNOLOGY GROUP LTD increased its bottom line by earning $0.64 versus $0.53 in the prior year. This year, the market expects an improvement in earnings ($1.17 versus $0.64).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 124.6% when compared to the same quarter one year prior, rising from $61.83 million to $138.87 million.
  • You can view the full analysis from the report here: MRVL Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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