Marvell Downgraded, Dollar Tree Upgraded: Wall Street's Top Analyst Calls

Marvell was downgraded to Neutral from Buy by BofA due to concerns about AI growth prospects. Dollar Tree was upgraded to Outperform from Market Perform by Telsey Advisory due to early success with multi-price point products. Ambarella was upgraded to Buy from Hold by Summit Insights following a Q2 beat.

In a series of significant updates to financial market outlooks, Bank of America (BofA) downgraded Marvell Technology (MRVL) to Neutral from Buy, citing concerns over AI growth prospects. Meanwhile, Telsey Advisory upgraded Dollar Tree (DLTR) to Outperform from Market Perform, driven by early success with multi-price point products. Additionally, Summit Insights upgraded Ambarella (AMBA) to Buy from Hold following a strong Q2 performance.

Marvell Technology (MRVL)
Marvell was downgraded to Neutral by BofA due to reduced confidence in the company's AI growth trajectory through 2026. The firm lowered its calendar year 2026 data center growth forecast to mid-teens from 23%-25% year-over-year. BofA also cut its FY27 and FY28 pro-forma EPS estimates by 10% and 14%, respectively. The downgrade was attributed to uncertainty around Marvell's new Microsoft Maia project and its share in Amazon's next-generation 3nm chip program. Despite the downgrade, BofA noted that Marvell's valuation remains attractive, with the stock trading at 20x-21x PE [1].

Dollar Tree (DLTR)
Telsey Advisory upgraded Dollar Tree to Outperform from Market Perform, citing early success with multi-price point products. The firm is encouraged by the introduction of $3, $4, and $5 food products, which have shown positive results. The price target for Dollar Tree was raised to $130 from $100 [2].

Ambarella (AMBA)
Ambarella was upgraded to Buy by Summit Insights following a Q2 beat. The firm noted that the emergence of autonomous robotics and AI-enabled portable cameras can significantly expand the company's total addressable market (TAM) in its IoT business. The stock surged about 17% premarket on Friday following the upgrade [3].

These updates reflect the evolving market dynamics and investor sentiment towards these companies. Investors are advised to closely monitor these developments and consider the implications for their investment portfolios.

References:
[1] https://www.ainvest.com/news/bofa-downgrades-marvell-neutral-ai-growth-visibility-2508/
[2] https://finance.yahoo.com/news/marvell-downgraded-dollar-tree-upgraded-133854416.html
[3] https://seekingalpha.com/news/4490454-ambarella-surges-after-strong-q2-rating-upgrade-at-summit