Auriga Maintains a 'Buy' on Broadcom (BRCM); Strength in Connectivity/Ethernet Partially Offset by Nokia/STB Headwinds
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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 $47 to $41.
Auriga analyst says, "We maintain our rating on BRCM, but reduce our price target to $41 as we see increased headwinds in baseband and set-top box (STB) segments, which leads us to reduce our CY11/12 estimates even as connectivity and Ethernet remain strong growth drivers. We have scaled back our baseband estimates for CY11/12 as sales at its largest customer, Nokia (NYSE: NOK)(Not Rated), remain on a downward trajectory. We also have reduced our expectations from the set-top box segments, based on indications of slowing growth and potential for market share losses to Intel (Nasdaq: INTC)(NR) at the high end. We remain bullish on growth prospects in switching and connectivity as BRCM continues to benefit from secular growth trends and market share gains. Overall, we see BRCM as well positioned in most market segments and expect it to grow top line at 10%-12% CAGR over the next five years."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $33.34 yesterday.
Auriga analyst says, "We maintain our rating on BRCM, but reduce our price target to $41 as we see increased headwinds in baseband and set-top box (STB) segments, which leads us to reduce our CY11/12 estimates even as connectivity and Ethernet remain strong growth drivers. We have scaled back our baseband estimates for CY11/12 as sales at its largest customer, Nokia (NYSE: NOK)(Not Rated), remain on a downward trajectory. We also have reduced our expectations from the set-top box segments, based on indications of slowing growth and potential for market share losses to Intel (Nasdaq: INTC)(NR) at the high end. We remain bullish on growth prospects in switching and connectivity as BRCM continues to benefit from secular growth trends and market share gains. Overall, we see BRCM as well positioned in most market segments and expect it to grow top line at 10%-12% CAGR over the next five years."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $33.34 yesterday.
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