Market Overview

UPDATE: Nomura Initiates Cavium at Reduce on Share Overvalue

Share:
Related CAVM
Barclays: Marvell's Cavium Purchase Is The Right Deal At The Right Time
Wall Street's M&A Chatter From Nov. 20: Marvell Technology, Aetna, Bloomin' Brands, AT&T

In a report published Tuesday, Nomura analyst Sanjay Chaurasia initiated coverage on Cavium (NASDAQ: CAVM) with a Reduce rating and $28.00 price target.

In the report, Nomura noted, “Cavium trades at a 75% premium to its comp group and is the most expensive name in our coverage. Investors assign a premium owing to Cavium's past revenue performance, positioning at key accounts, and high expectations from Neuron and Project Thunder. However, our analysis suggests that investors may be overvaluing the shares given recent weakness in enterprise security and app acceleration, as well as challenges in 2014 (Broadcom competition and lack of exposure to wireless infrastructure spending. We forecast CY13/CY14 sales/EPS of $296mn/$0.90 and $340mn/$1.15 vs. consensus of $307mn/$0.97 and $372mn/$1.34.”

Cavium closed on Monday at $37.41.

Latest Ratings for CAVM

DateFirmActionFromTo
Nov 2017Loop CapitalDowngradesBuyHold
Nov 2017Morgan StanleyDowngradesOverweightEqual-Weight
Nov 2017SusquehannaDowngradesPositiveNeutral

View More Analyst Ratings for CAVM
View the Latest Analyst Ratings

Posted-In: Nomura Sanjay ChaurasiaAnalyst Color Initiation Analyst Ratings

 

Related Articles (CAVM)

View Comments and Join the Discussion!

Partner Center