Deutsche Bank Sets Cavium Networks Price Target at $22.00 (CAVM)
The analysts wrote, “Consistent with their negative pre-announcement, Cavium reported roughly in line Q1 results (revenues: $52.7m / pro-forma EPS: $0.02). The Q2 guide was weak ($54m – $56m / $0.01 – $0.03) versus our estimate and consensus ““ with management noting a 2H Q2+ ramp of their chips into the wireless OEMs. We note improving enterprise trends (led by Cisco; 28% of Q1 revs) and strong momentum in the datacenter (positive read through for F5, etc). We remain cautious on Cavium’s growth rate and valuation, with our FY12 forecast anticipating negative growth versus FY11.”
Several other analysts have also recently commented on the stock. Analysts at Jefferies Group (NYSE: JEF) cut their price target on shares of Cavium Networks from $40.00 to $37.00 in a research note to investors on Wednesday. They now have a “buy” rating on the stock. Separately, analysts at Wunderlich raised their price target on shares of Cavium Networks from $18.00 to $20.00 in a research note to investors on Wednesday. They now have a “sell” rating on the stock. They noted that the move was a valuation call. Finally, analysts at Needham & Company cut their price target on shares of Cavium Networks from $35.00 to $33.00 in a research note to investors on Wednesday. They now have a “buy” rating on the stock.
Cavium Networks traded down 5.08% on Wednesday, hitting $25.40. Cavium Networks has a 52-week low of $24.20 and a 52-week high of $47.29. The company has a market cap of $1.255 billion and a price-to-earnings ratio of 26760.00.
The company last announced its quarterly results on Tuesday, May 1st. It reported $0.02 earnings per share (EPS) for the previous quarter, beating the Thomson Reuters consensus estimate of $0.01 EPS by $0.01. The company’s quarterly revenue was down 17.1% on a year-over-year basis. Analysts expect that Cavium Networks will post $0.12 EPS next quarter.
Cavium, Inc., formerly Cavium Networks, Inc., designs, develops and markets semiconductor processors for intelligent and secure networks.