Market Overview

Jefferies: Cavium's Upside Potential

Share:
Related CAVM
Barclays Boosts Price Targets For These 7 Stocks
Analyst Reactions To Cavium's Q4 Earnings
The Top Mid-Cap Stocks To Buy This Week (Seeking Alpha)

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

DateFirmActionFromTo
Feb 2015BarclaysMaintainsOverweight
Jan 2015Stifel NicolausMaintainsBuy
Jan 2015NomuraMaintainsNeutral

View More Analyst Ratings for CAVM
View the Latest Analyst Ratings

Posted-In: JefferiesAnalyst Color Reiteration Analyst Ratings

 

Related Articles (CAVM)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga PRO content