UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Cavium
In a report published Friday, Deutsche Bank reiterated its Hold rating on Cavium (NASDAQ: CAVM), and raised its price target from $28.00 to $30.00.
Deutsche Bank noted, “Inline results and guide on revs; EPS beat; maintain Hold on risk/reward - Decent results: Q4: $66.4M revs / $0.20 pro-forma EPS; $89.5M in pro-forma charges and modest margin improvement driving EPS beat, with revs in line versus DB and consensus. The Q1 guide was inline on revenues ($68.5m - $70m / $0.17-$0.19); penny beat on EPS at the mid-point. While we are constructive on order bookings and the CY14 growth opportunities from Fusion, Neuron, etc; our Hold rating reflects our caution on valuation (~35x FY13 consensus est; +32% rev growth expectation), volatility in OEM platform rollout timing and potential for a miss to elevated 2H CY13 expectations. Our PT moves up, from $28 to $30 on updated forward estimates.”
Cavium closed on Thursday at $33.44.
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