Why Cavium (CAVM) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of Cavium Inc. (CAVM) are higher 8.37% to $46.07 on Thursday following a ratings upgrade to "neutral" from "reduce" at Nomura Holdings (NMR).

The firm upgraded the company, which designs, develops and markets semiconductor processors for intelligent and secure networks, based on its financial results for the 2014 first quarter.

Cavium reported net income for the quarter was $2.3 million, or 4 cents per diluted share, compared to the net loss for the same quarter 2013, which was -$3.2 million, or -6 cents per diluted share.

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Revenue for the 2014 first quarter was $83.2 million versus the $69.5 million from previous year's first quarter.

TheStreet Ratings team rates CAVIUM INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CAVIUM INC (CAVM) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

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