Morgan Stanley Expects Strong Revenue Growth in 2014 for Cavium

In a report published Wednesday, Morgan Stanley analyst Joseph Moore reiterated an Overweight rating and $48.00 price target on

. In the report, Morgan Stanley noted, “Cavium should maintain share in the highest growth portion of the communications processor market (>8 cores), thus outgrowing the peer group. There are a number of growth initiatives that take time to play out, but allow for optionality in the 2015-17 time frame. All of this growth comes at a price, as the stock trades at a 30%+ premium to comm IC peers on a relatively low quality non-GAAP earnings number.” Cavium closed on Tuesday at $39.26.