UPDATE: Wunderlich Securities Lowers Cavium's PT

In a research report published earlier today by Wunderlich Securities, Cavium

announced that its Q1 revenue will be down 6-7%, compared to guidance for revenues to be flattish. According to the report, “NonGAAP EPS is now expected to be $0.00, compared to original guidance of $0.06-$0.07. We believe our thesis for our Sell rating, which includes slowing growth, competitive headwinds, and unsustainable and difficult-to-justify valuation of 5.6x EV/2013E sales, remains intact. We maintain our Sell rating and are lowering our 2012 and 2013 estimates and price target to $18 from $20.” Cavium closed yesterday at $30.57.