Broadcom (BRCM) Back at Top of its Game
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Price: $37.40 --0%
Rating Summary:
35 Buy, 1 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
35 Buy, 1 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade BRCM Now!
The proliferation of fast mobile phone connections and greater data appetites spawned by iPhone5’s and other smartphones will create a ripple through the communications infrastructure world over the next several years. Given this backdrop, the once dominant broadband king-pin, Broadcom (BRCM), looks like it might be back at the top of its game with highly integrated, high performance new products, say analysts at Drexel Hamilton.
“While Broadcom revenues are projected to increase 10.3% to $8.3bn in 2012 from 2011’s $7.4bn, margins have been under pressure in the first half of the year owing to competitive pressure that has pushed R&D outlays sharply higher,” said analyst Richard Whittington.
Like other ARM-based suppliers to the tablet and smart phone industry, Broadcom has had to go back to engineering basics and construct new generation designs around leading-edge process technology. The need for reduced power consumption in new generation mobile devices and at the same time greater processing requirements has led to a quicker node transition and much higher than previously anticipated engineering expense, noted a report today by Drexel Hamilton.
“iPhone5’s defining thrust in video and move to couple other connected devices will stress media incumbents and possibly pace up technology migration, benefiting Broadcom’s once dominant and highly profitable broadband segment,” said Whittington.
Drexel Hamilton initiated coverage on Broadcom (NASDAQ: BRCM) with a Buy rating and a $45.00 price target.
For an analyst ratings summary and ratings history on Broadcom click here. For more ratings news on Broadcom click here.
Shares of Broadcom closed at $36.57 yesterday, with a 52 week range of $27.59-$39.66.
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“While Broadcom revenues are projected to increase 10.3% to $8.3bn in 2012 from 2011’s $7.4bn, margins have been under pressure in the first half of the year owing to competitive pressure that has pushed R&D outlays sharply higher,” said analyst Richard Whittington.
Like other ARM-based suppliers to the tablet and smart phone industry, Broadcom has had to go back to engineering basics and construct new generation designs around leading-edge process technology. The need for reduced power consumption in new generation mobile devices and at the same time greater processing requirements has led to a quicker node transition and much higher than previously anticipated engineering expense, noted a report today by Drexel Hamilton.
“iPhone5’s defining thrust in video and move to couple other connected devices will stress media incumbents and possibly pace up technology migration, benefiting Broadcom’s once dominant and highly profitable broadband segment,” said Whittington.
Drexel Hamilton initiated coverage on Broadcom (NASDAQ: BRCM) with a Buy rating and a $45.00 price target.
For an analyst ratings summary and ratings history on Broadcom click here. For more ratings news on Broadcom click here.
Shares of Broadcom closed at $36.57 yesterday, with a 52 week range of $27.59-$39.66.
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