UPDATE: Stifel Nicolaus Raises PT to $40 on Cavium, Reiterates Buy

Stifel Nicolaus maintains its Buy rating on Cavium

and raises its price target up $7 to $40 as it believe growth resumes for the company in 2012. Stifel Nicolaus says, "We believe the communications market inventory reduction could be largely complete in the 1Q12. We expect Cavium can return to near double-digit q/q revenue growth again beginning in 2Q12. Other product lines such as Econa, PureVu and Celestial may provide some upside growth in 2H12." CAVM closed at $34.80 a share on Friday.