Nomura Securities Maintains a 'Buy' on Broadcom (BRCM); Cutting Estimates and PT
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Price: $54.67 --0%
Rating Summary:
15 Buy, 29 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 12
Rating Summary:
15 Buy, 29 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 12
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Nomura Securities maintains a 'Buy' on Broadcom (NASDAQ: BRCM) price target lowered from $45 to $42.
Analyst, Romit Shah, said, "Broadcom guided Q2 sales of $1.9-2.0 billion, vs. our est. of $2.03 billion, and EPS of $0.45 vs. our est. of $0.50. The core biz is doing well. The problem is NetLogic, which is generating an annual revenue run rate of $350 million, vs our prior est. of $420 million. Our estimates incl. ESO decrease from $0.50 to $0.45 in Q2, from $2.32 to $2.18 in CY12, and from $2.61 to $2.40 in CY13. The decline is driven by lower Q2 guidance and a fall-off in Qualcomm royalties in 2H13. Our $42 PT is based on 17.5x CY13 EPS (incl ESO). We remain positive on shares trading at a 25% discount to peers on ev/sales (12% discount on avg)."
For an analyst ratings summary and ratings history on Broadcom click here. For more ratings news on Broadcom click here.
Shares of Broadcom closed at $36.71 yesterday.
Analyst, Romit Shah, said, "Broadcom guided Q2 sales of $1.9-2.0 billion, vs. our est. of $2.03 billion, and EPS of $0.45 vs. our est. of $0.50. The core biz is doing well. The problem is NetLogic, which is generating an annual revenue run rate of $350 million, vs our prior est. of $420 million. Our estimates incl. ESO decrease from $0.50 to $0.45 in Q2, from $2.32 to $2.18 in CY12, and from $2.61 to $2.40 in CY13. The decline is driven by lower Q2 guidance and a fall-off in Qualcomm royalties in 2H13. Our $42 PT is based on 17.5x CY13 EPS (incl ESO). We remain positive on shares trading at a 25% discount to peers on ev/sales (12% discount on avg)."
For an analyst ratings summary and ratings history on Broadcom click here. For more ratings news on Broadcom click here.
Shares of Broadcom closed at $36.71 yesterday.
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