Jefferies Ups Price Target On Cavium Networks (CAVM)

Jefferies & Co. raised its price target on Cavium Networks CAVM to $38 from $35, after the company reported better than expected earnings. It has a Buy rating on shares. In a note to clients, Jefferies writes, "We recommend buying shares of Cavium as we believe it is positioned for a significant multi-year revenue ramp fueled by its strong backlog of design wins (>$500MM annual revenue run rate), which we expect to continue to expand as the market moves to multi-core (from single-core) processors." Shares of CAVM gained $1.99 yesterday to close at $32.11, a gain of 6.6%.