UPDATE: Auriga Increases PT to $39 on Cavium

Auriga reiterates its Buy rating on Cavium

and raised its price target to $39 from $37 a share as strong growth will likely resume in 2Q12. Auriga says, "the company indicated that it expects strong sequential growth (10%+ in our view) to resume in 2Q12 after soft 1Q12 guidance. CAVM 4Q11 top-line print was mostly in-line, but the flattish 1Q12 guidance fell a little short of consensus expectations. However, we think investors are not surprised by the flattish guide because of continued weakness in the wireless/service provider segment. We expect CAVM to have a very strong 2Q12 on new product cycle launches and the end of inventory correction." CAVM closed at $33.29 a share yesterday.