UPDATE: Deutsche Bank Color On CAVM Target Increase

Deutsche Bank, which raised its PT on shares of Cavium Networks, Inc. (NASDAQ: CAVM), is providing some color on the stock.

“Cavium reported Q1 revenues of $63.6 m (up 6% sequentially and up 53% yearly) and $0.32 of pro-forma EPS,” Deutsche Bank writes. “Revenues were slightly higher versus our estimate and consensus, while EPS was a solid beat. The Q2 revenue/EPS guide calls for $71-72m / $0.31-$0.32.

“A solid $500m+ Tier-1 design win funnel, combined with the potential for product cycle acceleration in 2H11+ and into FY12+ from the rollouts of 4G/LTE and datacenter Layer 2/3 and 4/7 equipment, merits our Buy rating.”

Cavium Networks closed Thursday at $47.20.