NEW YORK (TheStreet) -- Marvell Technology (MRVL) shares are up 0.8% to $13.24 in morning trading on Tuesday after the fabless semiconductor provider was upgraded to "overweight" from "equal weight" by analysts' at Morgan Stanley (MS) today.
The firm also raised the company's price target to $17.50 from $15, representing a potential upside of 32% from the stock's current price.
"Our view is that the push around the new technology clarifies the management decision-making progress, and is the reason management has been expressing guarded optimism despite more flexible language on long term investment. Either FLC will drive incremental revenues, or wireless investment will come down," the firm said.
The upgrade comes after Friday's sell off of the company's stock as the company reported a 52% year over year decline in earnings to 13 cents per share on revenue that also fell 24% to $724 million.
The results were mixed when compared to analysts' consensus estimates of 10 cents per share on revenue of $733.8 million.
For the current quarter the company forecast earnings between 10 and 12 cents per share on revenue between $710 million and $740 million. Analysts on average are expecting earnings of 12 cents per share on revenue of $743.7 million.
TheStreet Ratings team rates MARVELL TECHNOLOGY GROUP LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MARVELL TECHNOLOGY GROUP LTD (MRVL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."