UPDATE: Deutsche Bank Cuts PT to $22 on Cavium; Weak Q2 Guidance

Deutsche Bank says it lowers its price target from $24 to $22 on Cavium CAVM as it reiterates a Hold rating on shares. Deutsche Bank notes, "Consistent with their negative pre-announcement, Cavium reported roughly in line Q1 results (revenues: $52.7m / pro-forma EPS: $0.02). The Q2 guide was weak ($54m - $56m / $0.01 - $0.03) versus our estimate and consensus – with management noting a 2H Q2+ ramp of their chips into the wireless OEMs. We note improving enterprise trends (led by Cisco; 28% of Q1 revs) and strong momentum in the datacenter (positive read through for F5, etc). We remain cautious on Cavium's growth rate and valuation, with our FY12 forecast anticipating negative growth versus FY11." CAVM closed at $29.75 on Tuesday.