Auriga Maintains a 'Buy' on Broadcom (BRCM); Strong Top-line Guide, Restrained Opex and Improving Gross Margins

Auriga maintains a 'Buy' on Broadcom (NASDAQ: BRCM) price target raised to $44.00.

Auriga analyst says, "We maintain our rating and increase our price target, as the company delivered on all fronts -- a strong 3Q11 top-line guide, tight opex control and improving gross margins. This should come as a relief to investors after two disappointing quarters. 2Q11 top-line was in-line with our/consensus estimates, but bottom-line came in much higher than our/consensus estimates due to lower than expected opex, improved gross margins and a lower share count."

"Our CY11 estimate goes to $7.58bln/$3.00 (pro-forma EPS excl SBC and charges) from $7.53bln/$2.71 (consensus at $7.55bln/$2.74). Our CY12 estimate goes to $8.35bln/$3.20 from $8.27bln/$2.94 (consensus at $8.29bln/$3.00). Our CY12 top-line is going up because of higher expectations for STB and mobility segments, while bottom-line is also being aided by reduced opex and higher gross margin estimates."

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

Shares of Broadcom closed at $35.47 yesterday.

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