Jefferies Reiterates on Cavium as Premium Growth is Expected to Continue

In a report published Thursday, Jefferies analyst Sundeep Bajikar reiterated a Buy rating and $47.00 price target on

. In the report, Jefferies noted, “Our Wireless Base Station share gain thesis continues to play out, driving better than expected revenue growth and margin expansion. Additionally we expect Cavium to capture a leading share position in the emerging 64b ARM processor market, driven by superior product architecture and ecosystem enabled for Software Defined Networking. We expect premium revenue growth and margin expansion to continue in CY14. Reit. Buy.” Cavium closed on Wednesday at $36.99.