Gleacher & Co. Reiterates a 'Buy' on Broadcom (BRCM); Estimates Trim as 2 Pillars of our Thesis are Rattled: Growth Play for 11x
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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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Gleacher & Co. reiterates a 'Buy' on Broadcom (NASDAQ: BRCM), lowers PT from $52 to $44.
Gleacher analyst says, "We are curtailing upside for shares of BRCM as we lower our PT and trim our multiple to 15.5x from 18x, slowing 2012 growth ever so slightly to reflect some visible concerns. While our target is trimmed as a result of: 1) the broad-based sub-seasonal nature of handsets in Q2; 2) Nokia exposure; and 3) push-out of China baseband opportunity (recall #2 and #3 were both critical to our initial thesis), we continue to like upside opportunity over time on BRCM's proven ability to find increasing opportunities in connectivity's vastly growing marketplace."
"Near-term, while we trimmed growth in the June quarter (largely reflecting the
sub-seasonal handset market), EPS could be buoyed by lower than expected
share count given the depressed stock price this quarter. Our CY11 revenues
estimates remain virtually unchanged as we expect more meaningful contribution in 2H from Wireless & Mobile (including more notable China baseband) and Networking & Infrastructure. We trimmed our 2012 estimates to reflect a subdued Nokia (NYSE: NOK). Upside to our model is likely driven by Apple (Nasdaq: AAPL) exposure, trends within Infrastructure & Networking (Cisco (Nasdaq: CSCO) switching opportunity/10GbE), increasing adoption of combo units in emerging markets and China baseband opportunity (albeit later than expected)."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $34.99 yesterday.
Gleacher analyst says, "We are curtailing upside for shares of BRCM as we lower our PT and trim our multiple to 15.5x from 18x, slowing 2012 growth ever so slightly to reflect some visible concerns. While our target is trimmed as a result of: 1) the broad-based sub-seasonal nature of handsets in Q2; 2) Nokia exposure; and 3) push-out of China baseband opportunity (recall #2 and #3 were both critical to our initial thesis), we continue to like upside opportunity over time on BRCM's proven ability to find increasing opportunities in connectivity's vastly growing marketplace."
"Near-term, while we trimmed growth in the June quarter (largely reflecting the
sub-seasonal handset market), EPS could be buoyed by lower than expected
share count given the depressed stock price this quarter. Our CY11 revenues
estimates remain virtually unchanged as we expect more meaningful contribution in 2H from Wireless & Mobile (including more notable China baseband) and Networking & Infrastructure. We trimmed our 2012 estimates to reflect a subdued Nokia (NYSE: NOK). Upside to our model is likely driven by Apple (Nasdaq: AAPL) exposure, trends within Infrastructure & Networking (Cisco (Nasdaq: CSCO) switching opportunity/10GbE), increasing adoption of combo units in emerging markets and China baseband opportunity (albeit later than expected)."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $34.99 yesterday.
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