Benchmark Cuts Price Target on Broadcom (BRCM) Following New Outlook
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Price: $54.67 --0%
Rating Summary:
15 Buy, 29 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 39
Rating Summary:
15 Buy, 29 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 39
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Benchmark is reiterating its Buy rating on shares of Broadcom (NASDAQ: BRCM) and is cutting its price target from $45 to $40 due to outlook.
The company's quarterly results were inline if not slightly better due to lower than expected operating expenses. Management did release its Q4 guidance below expectations, which the firm blames on a reduction in the days of chip inventories held by Broadcom’s end customers.
An analyst at Benchmark comments, "In our opinion, end customers are most likely depleting chip inventories to the absolute minimum, and assuming the global economy does not further decelerate, it is likely Broadcom should soon see a rebound in customer order patterns. Because of this, it is likely 1Q12 chip industry sales could avoid the typical 1Q q/q seasonal dip."
For FY11, the firm currently estimates earnings of $2.82 per share on $7.324 billion in sales. For FY12, Benchmark forecasts earnings of $2.64 per share on $7.834 billion in sales.
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $35.80 yesterday.
The company's quarterly results were inline if not slightly better due to lower than expected operating expenses. Management did release its Q4 guidance below expectations, which the firm blames on a reduction in the days of chip inventories held by Broadcom’s end customers.
An analyst at Benchmark comments, "In our opinion, end customers are most likely depleting chip inventories to the absolute minimum, and assuming the global economy does not further decelerate, it is likely Broadcom should soon see a rebound in customer order patterns. Because of this, it is likely 1Q12 chip industry sales could avoid the typical 1Q q/q seasonal dip."
For FY11, the firm currently estimates earnings of $2.82 per share on $7.324 billion in sales. For FY12, Benchmark forecasts earnings of $2.64 per share on $7.834 billion in sales.
For more ratings news on Broadcom click here and for the rating history of Broadcom click here.
Shares of Broadcom closed at $35.80 yesterday.
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