Needham & Company maintains a 'Buy' on Broadcom (BRCM): NetLogic (NETL) Acquisition Makes Sense
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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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Needham & Company maintains a 'Buy' on Broadcom (NASDAQ: BRCM) price target of $43.00.
Needham analyst says, "Strong strategic fit - NetLogic's (Nasdaq: NETL) communications processors and knowledge-based search engines fit very well with Broadcom’s existing Ethernet switch and physical layer devices. The two companies share many of the same customers and their products appear in many of the same customer platforms. In the near-term (next 1-2 years) the two companies will deliver highly integrated reference platform solutions including pre-qualified software based on existing products. Over the long-term, the two companies will look to integrate at the silicon level (e.g. bringing NETL search engines onto BRCM’s switch chips)."
"Accretive to revenue growth, gross margin and non-GAAP EPS - The transaction also makes financial sense. The acquisition of NetLogic accelerates BRCM’s revenue growth and is accretive to Broadcom’s gross margin and non-GAAP EPS. BRCM expects the transaction to be accretive to non-GAAP EPS by approximately $0.10 in 2012 (assuming a 1Q11 close)."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $33.06 yesterday.
Needham analyst says, "Strong strategic fit - NetLogic's (Nasdaq: NETL) communications processors and knowledge-based search engines fit very well with Broadcom’s existing Ethernet switch and physical layer devices. The two companies share many of the same customers and their products appear in many of the same customer platforms. In the near-term (next 1-2 years) the two companies will deliver highly integrated reference platform solutions including pre-qualified software based on existing products. Over the long-term, the two companies will look to integrate at the silicon level (e.g. bringing NETL search engines onto BRCM’s switch chips)."
"Accretive to revenue growth, gross margin and non-GAAP EPS - The transaction also makes financial sense. The acquisition of NetLogic accelerates BRCM’s revenue growth and is accretive to Broadcom’s gross margin and non-GAAP EPS. BRCM expects the transaction to be accretive to non-GAAP EPS by approximately $0.10 in 2012 (assuming a 1Q11 close)."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $33.06 yesterday.
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