Wunderlich Securities Maintains Hold, $25 PT on Cavium

Wunderlich Securities reiterates its Hold rating and $25 price target on Cavium

as the company lowers December quarter estimates on weakness across the board. Wunderlich Securities says, "Cavium, Inc. (

) pre-announced December quarter revenues, at $56-$57 million, or down 16%-17% sequentially, compared to the original guidance range of down 8%-10% sequentially. This is the second quarter in a row the company has preannounced negatively and this time cited lower demand from enterprise/ service provider and broadband/consumer customers as well as a larger-thanexpected impact from a hub transition at a major customer as the culprits for the disappointing results." CAVM closed at $28.48 per share on Tuesday.