• TD Cowen’s downgrade comes after Marvell announced its acquisition of Lumentum.

• The firm said the deal could dilute earnings in its first year and questioned its timing given market cycles.

• It added that while the strategic rationale makes “some sense,” MRVL stock is unlikely to “work” in the near or medium term.

Marvell (MRVL) shares were on track to rebound on Tuesday morning after a double-digit dip in the previous session, but TD Cowen sees “material headwinds” for the stock after its acquisition of Lumentum (LITE).

The firm downgraded the stock to ‘Hold’ from ‘Buy’ and slashed its price target on Marvell by 50% to $175, down from $350. It said that the Marvell-Lumentum deal is…