UPDATE: Jefferies Cuts Target on Cavium to $40

Jefferies lowers its price target from $44 to $40 on Buy-rated Cavium

on wireless base station potential shifting its start in Q2. Jefferies comments, "We believe CAVM under-performed the SOX by 3,200 bps over the last year, primarily because investors struggled to assess Cavium's growth opportunity in wireless base station, while its other businesses disappointed. Our proprietary analysis and checks indicate wireless base station represents a ~$400MM/year opportunity for Cavium, with its first revenue ramp starting in Q2." CAVM closed at $30.57 a share on Monday.