Oppenheimer Reiterates Outperform On Cavium, $53 PT


In a research report issued yesterday, Oppenheimer analyst Rick Schafer reiterated an Outperform rating on Cavium (NASDAQ:CAVM) with a price target of $53.

Schafer noted, “Cavium reports 3Q results after Wednesday’s close. We see modest upside to consensus 3Q $97M/$0.37 top/bottom-line ests, as share gains in greenfield BST and SDN segments likely offset potential SP and wireline softness. Following “mixed” peer commentary, we expect similar trends in 4Q yielding a flattish sales outlook— roughly in line with consensus $100M. Wireless BST has led growth YTD, followed by LiquidIO, which could contribute $25M-$30M to 2014 revs. With new 2H14 products (low-core-count Octeon III, Neuron, Fusion) each likely double-digit top-line contributors in 2015, ThunderX launching in 2H15 and initial XPliant revs by EOY 2015, the company remains uniquely positioned for standout growth/upside. CAVM is a top pick for 2015. We reiterate our Outperform and $53 target.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a total average return of 9.7% and a 71.8% success rate. Schafer has a 10.1% average return when recommending CAVM, and is ranked #547 out of 3350 analysts.

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