UPDATE: J.P. Morgan Raises PT on Cavium Networks to $55 (CAVM)

J.P. Morgan is out with its report today on Cavium Networks

, raising its PT from $50 to $55. In a note to clients, J.P. Morgan writes, "We believe that investors are focusing on C13earnings given the expectations for a multi-year growth cycle for CAVM. Our new PT is based on a P/E multiple of 25x $2.20 of earnings power in C13 (~$510M in revenues). 25x is equivalent to the top- and bottom-line growth rate that we expect over the next few years, for a PEG ratio of 1.0." J.P. Morgan maintains Overweight on CAVM. At the time of posting, shares of CAVM were trading pre-market at $47.00, down 0.42% from Thursday's close.