Halftime Report

Monday - Friday, 12:00 - 1:00 PM ET
Halftime Report

Trader: be careful when looking at Marvell


Shares of Marvell Technology are already up 57% over the past year, and one wall street firm thinks the run is just getting started.

Today Needham upgraded the semiconductor company to a "buy" rating, and assigned a $21 price target -- a 27% upside from where the stock is currently trading.

But with the stock's move higher and its fight for market share in an increasingly competitive industry, is now really the time to buy the stock? The "Halftime Report" traders debated the call.

Needham: 25%+ upside for Marvell

Joe Terranova likes the stock here.  He notes that the company is moving into the quickly-growing automotive space, and he believes the company's high margins can help drive the stock to new highs.

Unlike Joe, Steve Weiss believes that the company tying itself so closely to the auto industry is not necessarily the best move. 

"I think you've got to be concerned about stocks that are more levered to the auto cycle. There are major subprime lending issues there that I think will come out," he said.

Sarat Sethi echoed Weiss' point, adding that "you have to look macro as opposed to just specific on this stock."

Looking at the technicals, Josh Brown notes that the stock "failed at this level in both 2014 and 2015." But he argues that the issues preventing the stock from reaching new highs in the past "are no longer relevant."

"If I had to pick one side or the other, I would say 'buy,'" he said on the "Halftime Report."