UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Cavium

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Cavium CAVM, and slightly raised its price target from $27.00 to $28.00. Deutsche Bank noted, “Inline results; pro-forma items help EPS beat; maintain Hold on risk/reward. Slightly better results for Cavium (Q3: $61.1M revs / $0.15 pro-forma EPS); but 30 cents in proforma adjustments and modest margin/mix improvement; lower tax rate driving EPS beat. The Q4 guide bracketed consensus on revenues ($65m - $67m / $0.16-$0.18). While we are constructive on order bookings, we remain cautious on volatility in OEM platform rollout timing and risk/reward at current levels – i.e. stock is pricing in an expectation for ‘beats and raises' in CY13 with little scope for a miss. Maintain our Hold rating and nudge our price target from $27 to $28 on updated forward estimates.” Cavium closed on Tuesday at $29.90.