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Research Alert: Mrvl: Modest Beat And Raise; Custom Silicon And Optics To Drive Upside
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:MRVL posted Apr-Q revenue growth of 28% to $2.418B, slightly ahead of consensus, with non-GAAP EPS of $0.80 beating the $0.79 consensus and up from $0.62 in the prior-year quarter. The Data Center segment remains the primary growth engine, generating $1.833B (+27% Y/Y, +11% Q/Q) and representing 76% of total revenue. We believe strength is coming from AI-related bookings across 800G/1.6T scale-out optics, 51.2T Ethernet switches, and custom XPU solutions. Guidance exceeds expectations with Jul-Q revenue of $2.700B (5%), implying approximately 35% Y/Y growth, a modest acceleration from the pace in Apr-Q. Non-GAAP gross margin of 58.9% compressed 90 bps as expected, reflecting the strategic shift toward lower-margin custom silicon solutions in the expanding AI infrastructure market. The recently completed Celestial AI and XConn acquisitions are now contributing to results and positioning MRVL to capitalize on emerging optical interconnect opportunities.
$MRVL
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Research Alert: CFRA Maintains Hold Rating On Shares Of Veeva Systems Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month price target to $175 from $215, 19.7x our FY 27 EPS estimate, well below VEEV's historical average (3-year average of 34.5x) to reflect increased competitive threats, slower growth as the business matures, and a challenging macro environment for small/mid size biopharma customers, in our view. Our target is near the low end of VEEV's ten-year historical forward average trading range (~17.1x), much of which we attribute to longer-term investor concerns for application software businesses, though we think near-term fundamentals remain healthy. While VEEV is part of the health care technology sub-industry, we note that CFRA recently moderated our view on the application software sub-industry (part of the info tech sector) to neutral from positive, with rapid developments in AI capabilities shaking investor confidence in established SaaS businesses and posing elevated competitive risks. We keep our FY 27 EPS estimate at $8.85 and lower our FY 28 EPS estimate to $9.88 from $10.03.
$VEEV
Research
Research Alert: Meta: Subscription Offerings Could Help Change The Narrative
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:META announced a global expansion of subscription offerings across Instagram, Facebook, and WhatsApp, introducing consumer plans priced at $3.99/month for Instagram Plus and Facebook Plus, and $2.99/month for WhatsApp Plus. The plans are intended to provide enhanced features like profile personalization, expanded reactions, and story analytics. META is also testing new subscription tiers under the Meta One brand, with AI-focused plans (Meta One Plus at $7.99/month; Meta One Premium at $19.99/month), as well as professional solutions for creators and businesses (Meta One Essential at $14.99/month; Meta One Advanced at $49.99/month). We consider this strategic shift a positive, as it has the potential to diversify META's revenue model beyond advertising with a more stable, recurring revenue stream, while boosting user engagement through premium features. Peer SNAP has found success through subscriptions. Up until now, investors have been frustrated by META's elevated spend and lack of new product rollouts.
$META