Broadcom (BRCM) Investors Shouldn't Jump to Conclusions, Thinks FBR
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Price: $54.67 --0%
Rating Summary:
15 Buy, 29 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
15 Buy, 29 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Shares of Broadcom (NASDAQ: BRCM) declined on Wednesday on reports Samsung had changed content in the Galaxy S4 mini. In the view of FBR analyst Christopher Rolland, investors should not rush to definitive conclusion about Broadcom's business outlook.
"It appears that Samsung has made some interesting content changes in the Galaxy S4 Mini. Most notably, it included a connectivity combo chip from Qualcomm (Nasdaq: QCOM) (replacing Broadcom in the S4) and a touch controller from Atmel (Nasdaq: ATML) (replacing Synaptics (Nasdaq: SYNA)," said Rolland.
"While these changes have implications for all suppliers involved, it should be noted that Samsung has a long and documented history of substituting parts across platforms and generations to decrease reliance on a single supplier and to gain pricing leverage against incumbents. Therefore, we believe definitive conclusions are premature, and we would tend to fade any extreme overreactions in these stocks today," he added.
FBR Capital has an Outperform rating on Broadcom with a price target of $44.00.
For an analyst ratings summary and ratings history on Broadcom (NASDAQ: BRCM) click here. For more ratings news on Broadcom click here.
Shares of Broadcom closed at $34.85 yesterday.
"It appears that Samsung has made some interesting content changes in the Galaxy S4 Mini. Most notably, it included a connectivity combo chip from Qualcomm (Nasdaq: QCOM) (replacing Broadcom in the S4) and a touch controller from Atmel (Nasdaq: ATML) (replacing Synaptics (Nasdaq: SYNA)," said Rolland.
"While these changes have implications for all suppliers involved, it should be noted that Samsung has a long and documented history of substituting parts across platforms and generations to decrease reliance on a single supplier and to gain pricing leverage against incumbents. Therefore, we believe definitive conclusions are premature, and we would tend to fade any extreme overreactions in these stocks today," he added.
FBR Capital has an Outperform rating on Broadcom with a price target of $44.00.
For an analyst ratings summary and ratings history on Broadcom (NASDAQ: BRCM) click here. For more ratings news on Broadcom click here.
Shares of Broadcom closed at $34.85 yesterday.
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