Jefferies Sees Solid Results Coming from Broadcom (BRCM) Tonight Following TI's (TXN) Release & Market Trends
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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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Jefferies is reiterating its Buy rating and $46 price target on shares of Broadcom (NASDAQ: BRCM) ahead of quarterly earnings which are scheduled to be reported later today after the closing bell.
The firm believes Broadcom will report solid results as they continue to benefit from supplying the WiFi-combo chips in the iPhone, they also feel that the company is the "dominant supplier" in Android phones. Market checks indicate trends will remain strong throughout the fourth quarter.
Yesterday TI (NYSE: TXN) reported that baseband revenues rose 16 percent due to Nokia (NYSE: NOK) depleting its channel, Jefferies anticipates that this will be a strong indicator for BRCM's SoC business at that OEM. The firm also believes Broadcom gained market share in the handset WiFi market as TI's lost some, the two companies control a majority of the handset WiFi market.
Jefferies comments the completion of the NetLogic (Nasdaq: NETL) acquisition "will put Broadcom into the radio head in wireless basestations, and expect positive trends there over the next 12-to-24 months."
An analyst at Jefferies comments, "Aside from macro-economic issues, we believe that risks mostly stem Qualcomm Inc. (Nasdaq: QCOM), execution in wireless, and the recent floods in Thailand that impact HDD and by extention Broadcom's set-top box business."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $37.39 yesterday.
The firm believes Broadcom will report solid results as they continue to benefit from supplying the WiFi-combo chips in the iPhone, they also feel that the company is the "dominant supplier" in Android phones. Market checks indicate trends will remain strong throughout the fourth quarter.
Yesterday TI (NYSE: TXN) reported that baseband revenues rose 16 percent due to Nokia (NYSE: NOK) depleting its channel, Jefferies anticipates that this will be a strong indicator for BRCM's SoC business at that OEM. The firm also believes Broadcom gained market share in the handset WiFi market as TI's lost some, the two companies control a majority of the handset WiFi market.
Jefferies comments the completion of the NetLogic (Nasdaq: NETL) acquisition "will put Broadcom into the radio head in wireless basestations, and expect positive trends there over the next 12-to-24 months."
An analyst at Jefferies comments, "Aside from macro-economic issues, we believe that risks mostly stem Qualcomm Inc. (Nasdaq: QCOM), execution in wireless, and the recent floods in Thailand that impact HDD and by extention Broadcom's set-top box business."
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $37.39 yesterday.
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