Jefferies Upgrades Cavium Networks (CAVM) to Buy, Citing Macro BTS Opportunity

Jefferies upgraded Cavium Networks (NASDAQ: CAVM) from Hold to Buy with a price target of $44 (up from $32).

The firm sees Cavium's addressable macro BTS revenue opportunity at approx. $400m per year.

"Our checks indicate Cavium's first tier-1 macro BTS design wins are likely to enter production in 2Q12, with additional designs ramping in 2H12. Our checks also confirm Cavium has won multiple designs at Huawei for Enterprise router/switch/server, and Huawei is likely to begin its Enterprise ramp in 3Q12."

They are leaving their treet-high estimates for CAVM unchanged, including 2013 non-GAAP EPS fo $1.46.


For an analyst ratings summary and ratings history on Cavium Networks click here. For more ratings news on Cavium Networks click here.

Shares of Cavium Networks closed at $32.70 yesterday.

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