Why Has Bank of America (Merrill Lynch) Given Cavium Networks Inc (NASDAQ:CAVM) a $70.00 Price Target
In a recent report announced today, Bank of America (Merrill Lynch) analysts initiated Cavium Networks Inc (NASDAQ:CAVM) coverage with Neutral rating, and a $70.00 TP.
From a total of 17 analysts covering Cavium Networks Inc. (NASDAQ:CAVM) stock, 15 rate it a ”Buy”, 0 a “Sell”, and 5 a ”Hold”. This means that 75% of the ratings are positive. The highest target price is $84 while the lowest target price is $50. The mean of all analyst targets is $71.65 with a 17.34% above today’s ($63.6) stock price. Cavium Networks Inc. was the topic of 14 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. JMP Securities downgraded shares on November 23 to “Underperform” rating. Topeka Capital Markets maintained shares with “Hold” rating and $61 target share price in a report from a July 30. Stifel Nicolaus downgraded CAVM stock in a recent report from October 29 to “Hold” rating. Canaccord Genuity maintained the rating on July 30. Canaccord Genuity has a “Buy” rating and a $76 price target on shares. Finally, Canaccord Genuity maintained the stock with “Buy” rating in a report issued on an August 13.
Approximately 326,013 shares of stock traded hands. Cavium Inc (NASDAQ:CAVM) has declined 1.39% since May 7, 2015 and is downtrending. It has outperformed by 0.54% the S&P500.
The overall sentiment of institutions has increased to 1.11 in Q2 2015. Its up 0.26, from 0.85 in 2015Q2. The ratio increased, as 30 institutions have sold all the shares of Cavium Inc that they owned while 83 funds have taken shares off the table. 34 funds have purchased shares for the first time while 91 added to their positions. These institutions now hold 65.74 million shares or 16.79% more than the 56.28 million shares they owned in 2015Q2.
The Fund Shearlink Capital Llc currently is holding shares equating to 8.14% of its total portfolio in Cavium Inc representing a total of 301,663 shares. Another fund,Herald Investment Management Ltd, is holding a total of 153,750 shares equating to 4.18% of their holdings. Additionally, Bender Robert & Associates has a 88,082 share stake in Cavium Inc which represents 3.66% of their total portfolio. The Fund, Bennett Lawrence Management L L C Ny, based out of New York, has also built up a stake in the stock, which represents a total of 3.54% of their total portfolio. Finally Cupps Capital Management Llc, a fund which is based in the state of Illinois reported a total holdings of 394,458 shares.
Cavium, Inc. is a provider of semiconductor processors, which enable processing for wired and wireless networking, communications, storage, cloud, wireless, security, video and connected home and office applications. The company has a market cap of $3.56 billion. The Company’s products include OCTEON, OCTEON Plus, OCTEON Fusion, OCTEON XL, LiquidIO, NITROX, NEURON Search and PureVu. It currently has negative earnings. The Company’s OCTEON, OCTEON Plus, OCTEON II and OCTEON III Multi-core MIPS64 processor families provide data and security processing.
According to Zacks Investment Research, “Cavium, Inc. is engaged in providing semiconductor processors that enable networking, communications, storage, video and security applications. The Company offers software compatible processors with functionality in enterprise, data-center, broadband/consumer and access and service provider equipment. Its processors are supported by ecosystem partners that provide operating systems, tools and application support, hardware reference designs and other services. Cavium, Inc., formerly known as Cavium Networks, Inc., is headquartered in Mountain View, California.” Get a free copy of the Zacks research report on Cavium Inc (CAVM).