Jefferies Maintains Buy, $32 Target on Cavium

Jefferies reiterates its Buy rating and $32 target price on Cavium

following a meeting where the company showcased its new products. Jefferies comments, "Cavium's meeting room showcased its WiVu products in the form of USB-powered dongles connected to TVs for wirelessly displaying video generated using either a Notebook, or a NAS (Network Attached Storage) box. ...Cavium expects its WiVu products to become available in the market in 3-to-4 months either as OEM-bundled offerings with devices such as TVs, or as add-on products that customers would purchase separately. The company noted an external USB-powered WiVu solution would retail at ~$50, and contain ~$6-$10 worth of Cavium's silicon. Cavium believes that WiVu and other WiFi Display solutions are still in the early stages of testing the market." CAVM closed at $31.44 per share on Tuesday.