Nomura Securities Maintains a 'Buy' on Broadcom (BRCM); Don't See Short-Term Impact From Samsung Move

Nomura Securities maintains a 'Buy' on Broadcom (NASDAQ: BRCM) price target of $42.00.

Analyst, Romit Shah, said, "Samsung acquired privately held, Sweden-based Nanoradio, which makes low-power WiFi chipsets for smartphones, tablets, and other portable battery-operated devices...We do not see any short-term impact from this for Broadcom, which is the primary supplier of connectivity chips to Samsung. While Nanoradio’s WiFi solution is a very low-power solution, it lacks on-die integration of other components such as Bluetooth and FM. In addition, Broadcom is well ahead in 802.11ac and offers integration of several other features such as WiFi Direct and Hot Spot capability, which are currently lacking from Nanoradio’s offerings...That said, we have to be mindful of Samsung’s vertical integration efforts longer term and the potential impact on suppliers such as Broadcom, TI (NYSE: TXN) and Marvell (Nasdaq: MRVL), as the vendor constitutes around 25% of the smartphone market."

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 $31.74 yesterday.

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