UPDATE: Morgan Stanley Initiates Coverage on Cavium with Overweight Rating, $48 PT as High Growth Justifies High Valuation

In a report published Thursday, Morgan Stanley analyst Joseph Moore initiated coverage on

with an Overweight rating and $48.00 price target. In the report, Morgan Stanley noted, “We are initiating coverage of Cavium with an Overweight rating. We are well above consensus on 2014e and 2015e EPS and see growth substantially higher than the peer group. Valuation is also exceptionally high, but with near-term upside we think the stock can get to $48.” Cavium closed on Wednesday at $40.27.