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Fly News Breaks for June 16, 2016
QLGC, CAVM
Jun 16, 2016 | 05:30 EDT
Oppenheimer analyst Rick Schafer downgraded Cavium (CAVM) to Perform saying he struggles to see the strategic rationale of the QLogic (QLGC) acquisition. QLogic is a slow growth asset at best, and the timing is puzzling with Cavium shares 25% off their April highs, Schafer tells investors in a research note. The analyst believes the deal will be growth and margin dilutive for at least the intermediate term.
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