Marvell (MRVL) Gains Analyst Support as Stifel Reiterates Buy After XConn Deal

Group 1 - Marvell Technology, Inc. is gaining attention as an AI stock, with analyst support from Stifel, which reiterated a Buy rating and set a price target of $114.00 [1] - The company has completed the acquisition of XConn Technologies, aimed at enhancing its UALink capabilities in the long term [2] - Following the acquisition, Stifel updated its revenue model, expecting initial contributions to start in fiscal Q3 2027, with an annualized run rate of $50 million by Q4 [3] Group 2 - The acquisition will lead to an estimated increase in FY27 non-GAAP operating expenses by $25 million annually and a decrease in Other Income by approximately $12 million due to reduced interest income from a $325 million cash outlay [4] - The projected diluted weighted-average shares outstanding will increase by approximately 2.7 million shares due to equity issued for the acquisition, resulting in an adjustment of FY27E NG EPS estimate from $3.41 to $3.37, while maintaining FY28E NG EPS at $4.90 [5] - FY29E revenue estimate has been adjusted from $17.58 billion to $17.73 billion, with NG EPS estimate unchanged at $6.68, indicating potential upside if the integration of XConn is successful [5]