Nomura Securities Downgrades Broadcom (BRCM) to Neutral

Nomura Securities downgraded Broadcom (NASDAQ: BRCM) from Buy to Neutral with a price target of $30.00 (from $33.00).

Analyst Romit Shah comments, "Our thesis on Broadcom has been that 2014 would be a win-win year for LTE: either the company would scale the business or exit, recouping several hundred million dollars in operating losses. However, more recent data would suggest a third scenario is emerging that, in our opinion, is much less favorable for investors. As such, we are downgrading Broadcom from Buy to Neutral. We recognize that Broadcom is making progress in LTE, but we expect improvement to be incremental. In addition, we think the company is challenged to meaningfully grow the baseband business. As such, we think Mobile and Wireless will remain a drag on the multiple and the fair value of the Networking and Broadband businesses over the remainder of 2014 and 2015."

The firm maintained CY14E EPS at $2.48; CY15E EPS at $2.65

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 $30.56 yesterday.

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