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Marvell Technology Inc agreed to acquire Lumentum Holdings Inc in an all-stock deal valued at $115 billion, aiming to strengthen its position in AI and data center infrastructure. The merger, expected to close by mid-2028, will make Marvell shareholders 67% owners of the combined entity. Both companies' shares fell on the announcement, reflecting investor concerns about the deal's risks and regulatory hurdles.

Marvell (MRVL) and Lumentum (LITE) announced an all-stock merger valuing Lumentum at $115B. Both companies' shares dropped over 10% on Monday. Summit Research provided commentary on the deal. The merger's impact on investors is still being assessed.

TD Cowen downgraded Marvell Technology to Hold from Buy and reduced its price target to $175 from $350, representing a 50% cut. The new target suggests a 2.1% upside from the Nov 2 close of $171.41. Recent analyst notes on the company have price targets ranging from $225 to $300.

Coherent (COHR) shares rose 6% after Fabrinet reported a 51% revenue increase and raised guidance above estimates. Fabrinet's data center revenue grew 78%, aligning with Coherent's guidance. Coherent reports earnings on Nov. 4, with cash flow concerns due to negative free cash flow of $1.0 billion in fiscal 2026. Marvell's $115 billion deal for Lumentum leaves Coherent as a standalone major laser maker.

Marvell (MRVL) fell after announcing an $115B all-stock deal to buy Lumentum (LITE). UBS maintained a Buy rating and $350 target, implying 102% upside. The target is based on rising earnings estimates but represents a high 62x forward P/E. The deal is expected to close in 2028 and add to Marvell's adjusted EPS.

UBS maintained a Buy rating and $350 price target for Marvell (MRVL) after its $115B acquisition of Lumentum (LITE). MRVL stock is down 30% this week. Analysts have mixed reactions, with some lowering targets due to valuation concerns and others remaining bullish on long-term growth.