Needham & Company Keeps Buy on Cavium Networks (CAVM) Despite Q1 Warning
Tweet
Share
E-mailGet Alerts CAVM Hot Sheet
Price: $86.23 --0%
Rating Summary:
12 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Needham & Company lowered estimates and its price target on Cavium Networks (NASDAQ: CAVM) from $36 to $35 after lower Q1 results, but kept its Buy rating.
"Though we are disappointed by the deeper than expected 1Q12 trough and have reduced our 2012 and 2013 revenue and earnings estimates to reflect the lower 1Q12 base, the pre-announcement does not change our investment thesis on CAVM shares," the analyst said. "We do not believe CAVM has lost market share and we continue to believe CAVM has a robust design win pipeline that will drive strong revenue growth for the next several years. As such, we maintain our Buy rating."
The firm reduced 1Q12 revenue and EPS estimates to $52.5MM/$0.00 from $56.5MM/$0.06 and 2Q12 estimates to $55.5MM/$0.05 from $62.0/$0.14. In aggregate, 2012 estimates decline to $236MM/$0.35 from $260MM/$0.65 and 2013 estimates decline to $315MM/$1.05 from $325MM/$1.15.
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 $30.57 yesterday.
"Though we are disappointed by the deeper than expected 1Q12 trough and have reduced our 2012 and 2013 revenue and earnings estimates to reflect the lower 1Q12 base, the pre-announcement does not change our investment thesis on CAVM shares," the analyst said. "We do not believe CAVM has lost market share and we continue to believe CAVM has a robust design win pipeline that will drive strong revenue growth for the next several years. As such, we maintain our Buy rating."
The firm reduced 1Q12 revenue and EPS estimates to $52.5MM/$0.00 from $56.5MM/$0.06 and 2Q12 estimates to $55.5MM/$0.05 from $62.0/$0.14. In aggregate, 2012 estimates decline to $236MM/$0.35 from $260MM/$0.65 and 2013 estimates decline to $315MM/$1.05 from $325MM/$1.15.
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 $30.57 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
- Movano (MOVE) Misses Q2 EPS by 195c
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst PT ChangeRelated Entities
Needham & Company, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
