Broadcom (BRCM) PT Lifted to $50 at BofA/Merrill Lynch After SOTP Analysis

BofA/Merrill Lynch analyst Vivek Arya reiterated a Buy rating and raised his price target on Broadcom (NASDAQ: BRCM) to $50.00 (from $45.00) following a sum of parts analysis.

Arya notes the stock trades at a 20%+ discount to the sector as investors worry about competitive risks in Wi-Fi connectivity and dilution from stock comp expense. However, they believe the Street could be overlooking BRCM’s core, leadership in attractive Networking and Broadband markets that account for 60%+ of sales and 80%+ of profits.

They raise 2014/15E pro-forma EPS by $0.03/$0.24 to $2.80/$3.25 on increased confidence in benefits of mobile restructuring. The firm's SOTP suggests a valuation range of $46-$54

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 $40.12 yesterday.

You May Also Be Interested In

• BofA Securities Upgrades Etsy (ETSY) to Buy, 'Still Room to Run'
• Lowe's (LOW) PT Lowered to $260 at Barclays
• Lucid Capital Markets Starts Eloxx Pharma (ELOX) at Buy