Jefferies Cuts Numbers on Cavium Networks (CAVM) After Q1 Warning
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Price: $86.23 --0%
Rating Summary:
12 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies cut numbers on Cavium Networks (NASDAQ: CAVM) following lower Q1 guidance, but kept its Buy rating.
The firm cut its price target from $44 to $40, cut Q1 EPS from $0.06 to $0.00, FY12 from $0.80 to $0.50 and FY13 from $1.46 to $1.31.
Jefferies commented, "We believe CAVM under-performed the SOX by 3,200 bps over the last year, primarily because investors struggled to assess Cavium's growth opportunity in wireless base station, while its other businesses disappointed. Our proprietary analysis and checks indicate wireless base station represents a ~$400MM/year opportunity for Cavium, with its first revenue ramp starting in Q2."
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.
The firm cut its price target from $44 to $40, cut Q1 EPS from $0.06 to $0.00, FY12 from $0.80 to $0.50 and FY13 from $1.46 to $1.31.
Jefferies commented, "We believe CAVM under-performed the SOX by 3,200 bps over the last year, primarily because investors struggled to assess Cavium's growth opportunity in wireless base station, while its other businesses disappointed. Our proprietary analysis and checks indicate wireless base station represents a ~$400MM/year opportunity for Cavium, with its first revenue ramp starting in Q2."
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.
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