NEW YORK (TheStreet) -- Shares of Marvell Technology Group (MRVL) are falling, lower by 2.03% to $13.06 in early market trading Thursday, after the semiconductor company had its rating cut to "sell" from "neutral" by analysts at Goldman Sachs this morning.
Goldman Sachs analysts believe Marvell's earnings are being pressured in the fourth quarter and in the full year 2015, and lowered its price target for shares to $12 from $14.
The investment firm also cited weakness at the Bermuda-based company's mobile and wireless unit for its downgrade.
Yesterday, Marvell Technology reported that it was ranked to Thomson Reuters' Top 100 International Innovator list for the third straight year.
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 some important positives, 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 18.4%. 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