Needham & Company Maintains a 'Buy' on Broadcom (BRCM); Reducing Our Estimates In Anticipation of a Below Seasonal 2H11

Needham & Company maintains a 'Buy' on Broadcom (NASDAQ: BRCM), PT lowered from $44 to $40.

Needham analyst says, "In coordination with our industry report, Summer Earnings Preview: Wait For the Event, Then Buy The News, we are lowering our estimates on BRCM to reflect softness in its Mobile & Wireless business as Nokia continues to bleed market share and as iPhone sales may take a slight pause ahead of the anticipated launch of iPhone 4S/5 in September. The long term story for BRCM remains intact. While we would not be buyers ahead of the quarter due to an anticipated soft guide, we encourage investors to aggressively accumulate shares following the release of 2Q results/3Q guidance. Though our long term thesis remains unchanged, we are reducing our price target to $40, or 15x our new 2012 non-GAAP EPS estimate of $2.65 (from $2.95) to reflect our reduced estimates. We maintain our Buy rating and would be buyers following the company’s earnings announcement."

For more ratings news on Broadcom click here and for the rating history of Broadcom click here.

Shares of Broadcom closed at $32.88 yesterday.

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