UPDATE: Jefferies Upgrades Cavium to Buy

Jefferies raises its rating on Cavium

to Buy from Hold, with a price target of $44 (previously, $32), as the company transitions to low-cost base station. Jefferies says, "We believe 1) next-gen 3G/LTE macro base station (BTS) ramping this year would increasingly use lower cost ASIC/ASSP over high-end FPGA, and 2) disruptive impact of low cost base BTS would increase with volume shipments of small cell BTS by ~2014. We upgrade CAVM to Buy (from Hold) with a $44 PT, as our recent proprietary checks and analysis increase our confidence in our Street-high model." CAVM closed at $32.70 a share yesterday.