Auriga Maintains a 'Buy' on Broadcom (BRCM); Surprise Weakness in Mobility Overshadows Opex Surprise Weakness in Mobility Overshadows Opex Surprise Weakness in Mobility Overshadows Opex Discipline
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Price: $54.67 --0%
Rating Summary:
15 Buy, 29 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 29 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga maintains a 'Buy' on Broadcom (NASDAQ: BRCM), PT lowered from $50 to $47.
Auriga analyst says, "We maintain our rating, but reduce our price target to $47 for Broadcom as the company's guidance for 2Q11 was significantly below our/consensus estimates due to surprising weakness in the mobility segment. While we had some concerns about potential Japan related supply-chain disruption and baseband business at Nokia (NYSE: NOK)(NR); management pointed to weakness in the connectivity segment driven by business slowdown at multiple customers. We continue to think that Japan related disruption maybe at least partially responsible for the customer slowdown. With management ruling out an inventory correction or share losses, our view is that the decline might be a combination of soft business at target customers and potential ASP decline. As a result, we have reduced our CY11 and CY12 estimates since we are perhaps conservatively not modeling an above seasonal bounce-back in future quarters...Based on its product portfolio and current customer traction, we continue to see BRCM as well positioned in the cellular/connectivity segment and expect it to bounce back to growth over the long term by winning and/or expanding business at multiple customers."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $40.41 yesterday.
Auriga analyst says, "We maintain our rating, but reduce our price target to $47 for Broadcom as the company's guidance for 2Q11 was significantly below our/consensus estimates due to surprising weakness in the mobility segment. While we had some concerns about potential Japan related supply-chain disruption and baseband business at Nokia (NYSE: NOK)(NR); management pointed to weakness in the connectivity segment driven by business slowdown at multiple customers. We continue to think that Japan related disruption maybe at least partially responsible for the customer slowdown. With management ruling out an inventory correction or share losses, our view is that the decline might be a combination of soft business at target customers and potential ASP decline. As a result, we have reduced our CY11 and CY12 estimates since we are perhaps conservatively not modeling an above seasonal bounce-back in future quarters...Based on its product portfolio and current customer traction, we continue to see BRCM as well positioned in the cellular/connectivity segment and expect it to bounce back to growth over the long term by winning and/or expanding business at multiple customers."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $40.41 yesterday.
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