Oppenheimer Reiterates Perform on Cavium

Oppenheimer maintains its Perform rating on Cavium

as inventory drawdown leads to negative pre-announcement for the fourth quarter. Oppenheimer notes, "CAVM expects 4Q11 to decline 16-17% Q/Q compared with prior guidance of a 9% Q/Q down-tick. CAVM continues to be impacted by carriers' build-pause-build spending patterns, particularly in China, as well as the "typical" spending pause surrounding the T-Mobile/AT&T merger. We expect to see carrier spending rebound in 1H12." CAVM closed at $28.48 per share on Tuesday.