Benchmark Upgrades Broadcom (BRCM) to Buy; Sees Growth in Sluggish Economy

November 26, 2012 6:40 AM EST
Get Alerts BRCM Hot Sheet
Price: $54.67 --0%

Rating Summary:
    22 Buy, 32 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Benchmark upgraded Broadcom (NASDAQ: BRCM) from Hold to Buy with a price target of $40.00.

The firm comments, "Like most semiconductor device companies Broadcom is feeling the pinch of a sluggish global economy. However, while the chip industry should contract ~2% during 2012, Broadcom should deliver 3% organic revenue growth for the year (excluding NetLogic acquisition benefit), despite the company’s large size. The company’s growth benefits from a communications-centric product portfolio, one of the fastest growing sub-segments of the chip group."

"Additionally, the company has a proven track record of gaining market share and has consistently achieved this by: 1) making tech-focused acquisitions of mostly early-stage companies in order to accelerate time-to-market and 2) by integrating analog and mixed signal functionality onto a single die and manufacturing these SoCs on the most advanced standard CMOS technologies."

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 $31.58 yesterday.

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