Cavium: Long-Term Investors Will Be Rewarded As New Products Ramp Up, Says William Blair


In a research report issued yesterday, William Blair analyst Anil Doradla maintained an Outperform rating on Cavium (NASDAQ:CAVM), no price target provided. This report follows an investor meetings with Arthur Chadwick, CFO of Cavium.

Doradla observed, “Cavium trades at 29.6 times our calendar 2015 EPS estimate of $1.90. While valuation may be a concern to some investors in the near term, we believe investors with a longerterm approach will be rewarded as the company gains traction with its new product cycles (especially on the Thunder front). We maintain our Outperform rating and view any pullback in the stock as a buying opportunity given continued product cycle tailwinds and the upcoming ARM opportunities.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anil Doradla has a total average return of 7.9% and a 57.1% success rate. Doradla has a 34.7% average return when recommending CAVM, and is ranked #1333 out of 3253 analysts.

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