UPDATE: Nomura Reiterates Neutral Rating, Raises PT on Cavium Following Solid Q4 Revenue

In a report published Thursday, Nomura analyst Sanjay Chaurasia reiterated a Neutral rating on

, and raised the price target from $45.00 to $58.00. In the report, Nomura noted, “Q4 revenue of $101m (up 4% qoq) was inline with our estimate and consensus of $101m. The company guided Q1 revenue to $101.5m (flat qoq), higher than our estimate of $99 and slightly better than consensus of $101m. Cavium started to widely sample its ARM 64-bit server chips, ThunderX, in Q4 to several customers. We are increasing our CY15 EPS estimate from $1.76 to $1.80. We are also establishing CY16 estimates of $568m/$2.33. We are increasing our price target to $58 based on 25x CY16E EPS. Cavium is trading at P/E (NTM) multiple of 32x, which is an 88% premium to our coverage. We maintain our Neutral rating.” Cavium closed on Wednesday at $59.73.