Nomura Securities Maintains a 'Buy' on Broadcom (BRCM); Q3 Preview

Nomura Securities maintains a 'Buy' on Broadcom (NASDAQ: BRCM) price target of $45.00.

Nomura anlayst, Romit Shah, said, "Broadcom is our top pick in semis. We think that Broadcom will report modest upside to Q3 guidance and our estimate of revenue of $1.95bn (+8.6%) and EPS of $0.81. However, we do not see earnings (Tuesday) as a big catalyst for the stock given outperformance over the past three months (up 15% versus S&P -5%) and our expectation for an in-line Q4 outlook. The stock trades at 12x CY12E earnings (16x with options) and at 2.5x enterprise value to sales (13% discount to our coverage)."

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

Shares of Broadcom closed at $37.22 yesterday.

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