Barclays Maintains an 'Overweight' on Cavium Networks (CAVM); Reset as Expected, Pipeline Keeps Growing

Barclays maintains an 'Overweight' on Cavium Networks (NASDAQ: CAVM) price target of $40.00.

Barclays analyst says, "Cavium reported Q3 results roughly in line with its negative preannouncement but guided Q4 revenue down 8-10% Q/Q due to inventory corrections in both the Enterprise (Cisco (Nasdaq: CSCO)) and Service Provider markets. We continue to believe Cavium is still well positioned to deliver strong secular growth in 2012 and beyond with growth to resume post this near-term reset driven by new ramps in Enterprise (CSCO Cat 3K) and wireless (Huawei, NSN, and Samsung)."

"Our CY11 revenue and EPS move to $265M/$1.13 (from $271M/$1.17 prior) and our CY12 estimates move to $294M/$1.17 (from $315M/$1.28)."

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 $32.69 yesterday.

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