Jefferies: Cavium's Predicted Q2 Growth

In a research report published this morning, Jefferies says Cavium's

revenue growth is set to be driven by multicore processor shares from Freescale and Intel. According to Jefferies, "Wireless Base Station (BTS) Potential. Our Buy rating on CAVM is driven by our view that 3G/LTE BTS currently shipping are priced in the range of ~$10K to $20K, down from prior-generation BTS prices in the ~$40K range, and the transition to low cost BTS has created an opportunity for Cavium to take share from incumbents Freescale and Intel, starting in 2Q12. Our proprietary framework indicates Cavium's addressable macro BTS revenue opportunity is ~$400MM." Jefferies maintains its $40 PT on Cavium, which closed Friday at $28.93.