Auriga Reiterates a 'Buy' on Cavium Networks (CAVM); Recent Weakness Creates a Strong Buying Opportunity

Auriga reiterates a 'Buy' on Cavium Networks (NASDAQ: CAVM) price target of $56.

Auriga analyst says, "Despite recent weakness reported by key Cavium customers, we continue to expect CAVM to meet expectations for Q2 print/ Q3 guide due to strong secular trends in the multi-core processor segment, market share gains in 3G/4G base-station segment and exposure to fast growing security startups like Palo Alto Networks (private). Our analysis also shows that CAVM is well positioned for the long-term as it pulls away from the competition in the multi-core segment for new design wins and increases its TAM in base-stations and set-top boxes by integrating additional functionality like DSP (digital signal processors). We would use this weakness to build positions ahead of the earnings call next week."

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 $34.42 yesterday.

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