Auriga Upgrades Cavium Networks (CAVM) to Buy
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Price: $86.23 --0%
Rating Summary:
13 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 3
Rating Summary:
13 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 3
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Auriga upgraded Cavium Networks (NASDAQ: CAVM) from Hold to Buy and raised their price target from $44 to $54.
The firm states, "we take up our five year revenue and EPS growth targets (but leave 2012 unchanged) based on our opinion that the 4G/LTE upgrade cycle will be bigger and sooner than we had previously anticipated. Our opinion is being driven by the conviction that wireless data growth rates will outstrip Moore's law, triggering significant growth for semiconductor vendors. Conversations with industry experts suggests that CAVM will be the dominant vendor of packet processing solutions for base-stations and wireless gateways and could potentially achieve ~$200mln in 2015 based on existing design wins. CAVM currently has a small footprint ( < $20mln) in this segment. We also positively view the recent Wavesat/Celestial acquisitions as we see a dramatic expansion of TAM in base-stations and Set-top boxes/ DTV segments and strong business/technology synergies, which could provide further upside to our growth estimates. We leave our significantly above 2012 consensus estimates unchanged, but see potential for more upside."
For more ratings news on Cavium Networks click here and for the rating history of Cavium Networks click here.
Shares of Cavium Networks closed at $42.93 yesterday.
The firm states, "we take up our five year revenue and EPS growth targets (but leave 2012 unchanged) based on our opinion that the 4G/LTE upgrade cycle will be bigger and sooner than we had previously anticipated. Our opinion is being driven by the conviction that wireless data growth rates will outstrip Moore's law, triggering significant growth for semiconductor vendors. Conversations with industry experts suggests that CAVM will be the dominant vendor of packet processing solutions for base-stations and wireless gateways and could potentially achieve ~$200mln in 2015 based on existing design wins. CAVM currently has a small footprint ( < $20mln) in this segment. We also positively view the recent Wavesat/Celestial acquisitions as we see a dramatic expansion of TAM in base-stations and Set-top boxes/ DTV segments and strong business/technology synergies, which could provide further upside to our growth estimates. We leave our significantly above 2012 consensus estimates unchanged, but see potential for more upside."
For more ratings news on Cavium Networks click here and for the rating history of Cavium Networks click here.
Shares of Cavium Networks closed at $42.93 yesterday.
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