Market Overview

Jefferies: Cavium's Upside Potential

Related CAVM
Hear That? It's Tech Earnings Season Sneaking In
Pacific Crest Has Concerns About Chip Suppliers

In a research report published this morning, Cavium (NASDAQ: CAVM) hosted investor meetings that increased conviction in Jefferies' non-consensus view concerning wireless base stations.

According to Jefferies, "The CEO explained Cavium's recent earnings disappointments were driven by a combination of 1) weak Service Provider demand, 2) a pause in new products entering production, and 3) a Cisco-related inventory hub transition, which resulted in revenue impact of ~10% per quarter. As of Q2, Service Provider bookings have picked up, new BTS products are entering production, shipments into Cisco are in the process of returning to normalcy, and multiple new customer platforms are likely to enter production in 2H. Additionally, Cavium is taking a more conservative approach in judging the timing of its customer product ramps."

Jefferies maintains its Buy rating and $37 PT on Cavium.

Latest Ratings for CAVM

Aug 2015JefferiesMaintainsBuy
Jul 2015BarclaysMaintainsOverweight
Jul 2015Stifel NicolausMaintainsBuy

View More Analyst Ratings for CAVM
View the Latest Analyst Ratings

Posted-In: JefferiesAnalyst Color Reiteration Analyst Ratings


Related Articles (CAVM)

View Comments and Join the Discussion!

Get Benzinga's Newsletters