Marvell shares jump after analyst upgrade

NEW YORK - Shares of chip maker Marvell Technology Group Ltd. rose Tuesday with the rest of the market after an American Technology Research analyst upgraded the stock to a "Buy" from "Neutral."

Its shares rose 66 cents, or 9.9 percent, to close at $7.36.

That jump came even as Marvell lowered expectations Monday for fiscal third-quarter revenue.

AmTech analyst Mark McKechnie said in a note to investors Tuesday that the shares look cheap, down about 47 percent this year. He set a price target of $10 per share.

McKechnie said Marvell should come through the economic downturn relatively unscathed and be in a good position to take advantage of a recovery in the personal computer, networking equipment and cell-phone markets during the second half of next year.

For the period ended Nov. 1, the company now expects revenue to come in between $780.7 million and $788.3 million, down from previous expectations of between $860 million and $880 million.

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