UBS Maintains a 'Buy' on Cavium Networks (CAVM); Lower Estimates, PT, as Macro & Company Issues Weigh on 3Q
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Price: $86.23 --0%
Rating Summary:
12 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 14
Rating Summary:
12 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 14
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UBS maintains a 'Buy' on Cavium Networks (NASDAQ: CAVM) price target lowered from $40 to $37.
UBS analyst says, "CAVM lowered 3Q rev guidance to -4-6% q/q ($67-69m) from +2-3% ($73-74m) on greater than expected enterprise market weakness from: 1) larger than expected impact from Cisco’s (Nasdaq: CSCO) hub transition, which has been accelerated, 2) non-Cisco enterprise demand weakness, primarily from inventory destocking. Cavium was also impacted by services revenue expected to be recognized in 3Q but deferred, likely into 4Q. We believe sales into the service provider market (15-20% of sales) remains strong."
"We lower our 3Q11 sales/non-GAAP EPS estimates by 7%/15% to $68.1m/$0.28 and 2011 estimates by 4%/9% to $276.2m/$1.22. For 2012/13, we lower our sales estimates by 6% to $329m/$405m and non-GAAP EPS by 8% to $1.41/$1.79."
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 $31.21 yesterday.
UBS analyst says, "CAVM lowered 3Q rev guidance to -4-6% q/q ($67-69m) from +2-3% ($73-74m) on greater than expected enterprise market weakness from: 1) larger than expected impact from Cisco’s (Nasdaq: CSCO) hub transition, which has been accelerated, 2) non-Cisco enterprise demand weakness, primarily from inventory destocking. Cavium was also impacted by services revenue expected to be recognized in 3Q but deferred, likely into 4Q. We believe sales into the service provider market (15-20% of sales) remains strong."
"We lower our 3Q11 sales/non-GAAP EPS estimates by 7%/15% to $68.1m/$0.28 and 2011 estimates by 4%/9% to $276.2m/$1.22. For 2012/13, we lower our sales estimates by 6% to $329m/$405m and non-GAAP EPS by 8% to $1.41/$1.79."
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 $31.21 yesterday.
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