Auriga Maintains a 'Buy' on Cavium Networks (CAVM); Drives In-line Q2, Soft Guidance; Search Offering Positive

Auriga maintains a 'Buy' on Cavium Networks (NASDAQ: CAVM), price target lowered from $56 to $48.

Auriga analyst says, "We maintain our Rating but reduce our price target to $48 for Cavium (CAVM), as weaker than expected contribution from the Celestial acquisition led to in-line Q2 revenue and weaker than expected top-line guidance for 3Q11 despite strong growth elsewhere. CAVM showed strong sequential organic growth of 10% in 2Q11, largely driven by Cisco (Nasdaq: CSCO) (Hold) and service provider segment. Soft top-line guidance largely seems to be a function of a smaller Celestial contribution, and is also getting impacted by hub arrangement at CSCO; service provider/broadband continues to drive growth."

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 $32.06 yesterday.

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