Auriga Maintains a 'Buy' on Cavium Networks (CAVM) on L-T Potential; Cutting Estimates as S-T Trends Turn Soft

Auriga maintains a 'Buy' on Cavium Networks (NASDAQ: CAVM) price target of $41.00.

Auriga analyst said, "While we still expect strong sequential growth over multiple quarters on order recovery at Cisco (Nasdaq: CSCO)(Buy) and new base-station/switch platform launches, weak wireless trends and potential for slower than expected CAT3k ramp at CSCO leads us to scale back our estimates. Our longer-term bullish view on CAVM remains unchanged -- we continue to expect 25%-30% top-line CAGR over the next five years on increased design win traction with multi-core processors in enterprise/service provider segments and entry into new markets with Neuron (TCAM) and Fusion (Small cells) products. We view CAVM stock as attractively valued for longer term oriented investors."

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 $31.34 yesterday.

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