Deutsche Bank Maintains Hold on Cavium Networks after Negative 4Q Pre-Announcement
Deutsche Bank has published a research report on Cavium Networks (NASDAQ: CAVM) after the company negatively pre-announced its 4Q outlook.
In the report, Deutsche Bank writes, "Management again noted weaker than expected revenues from Cavium's enterprise customers as well as service provider and consumer market segments. Additionally, management noted that the shortfall was exaggerated by the continued hub transition at Cisco. This is the third time in a row that Cavium has blamed the hub transition at Cisco, continuing to expose the challenge of consistently relying on one customer for more than 20% of sales. To their credit, management cautioned in the last call that this hub transition should be completed by the end of Q4, and they should return to normalized inventory levels by Q1 of 2012. Unfortunately this caution was not baked into their guidance at the time."
Deutsche Bank maintains its Hold rating and $27 price target on Cavium Networks, which is currently trading down $0.42 from yesterday's $28.48 closing price.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.