Rodman & Renshaw Believes Cavium (CAVM) Could Be Good Fit for QUALCOMM (QCOM)

Shares of Cavium Networks (Nasdaq: CAVM) are up more than 6 percent Monday as traders may be taking heed to a call from Rodman & Renshaw's Ashok Kumar earlier.

The analyst suggests a QUALCOMM (Nasdaq: QCOM) acquisition of Cavium would be "logical" given complementary product lines. Kumar believes QUALCOMM/Cavium would be a better fit than the Broadcom (Nasdaq: BRCM)/NetLogic (Nasdaq: NETL) deal.

Kumar suggests Cavium could be taken out for about two times the company's current value of about $1.5 billion (as of the close on Friday).

Rodman & Renshaw maintains a Market Perform rating on shares of Cavium Networks.

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