Following Cavium (CAVM) announcement that it is acquiring QLogic (QLGC) in a cash and stock deal valued at $1.36B, Needham analyst N. Quinn Bolton says the transaction's positives include increased scale, revenue, cash flow and NG EPS. However, Bolton acknowledges that Cavium bears are likely to respond that the transaction signals a "less rosy" outlook for its new products and that the combined company's slower revenue growth and lower gross margin will lead to multiple compression. The analyst reiterates a Buy rating and $66 price target on Cavium's shares.