Marvell Technology (MRVL) is likely to post a slight beat and raise driven by strength in its optical business, RBC Capital Markets said, adding that the company's management could sound incrementally positive on fiscal 2027 even if full-year guidance is not increased.

The company is scheduled to report its fiscal Q4 results Thursday.

RBC said in a Sunday note that it expects fiscal Q4 adjusted earnings of $0.79 per share and revenue of $2.2 billion. For the April quarter, the firm expects the guidance to come in slightly above the consensus of $2.27 billion in revenue and $0.75 per share.

The brokerage expects Marvell to remain a key Application-Specific Integrated Circuit, or ASIC, supplier to Amazon (AMZN) and views the AWS partnership with OpenAI as a long-term positive.

The investment firm said the company's Data Center business is tracking ahead of plan but they remain unsure whether management will revise its prior expectation of at least 25% growth in fiscal 2027.

RBC reiterated its outperform rating on the stock, with a $105 price target.

Shares of Marvell were down 1.5% in recent Monday trading.

Price: 80.43, Change: -1.26, Percent Change: -1.54