Broadcom (BRCM) Numbers Lifted at BofA/Merrill Lynch on Baseband Exit

BofA/Merrill Lynch analyst Vivek Arya reiterated a Buy rating, raised estimates and raised his price target on Broadcom (NASDAQ: BRCM) to $42.00 (from $32.00) after the company announced it is exiting its money losing mobile baseband business.

"The exit improves profitability but would create pressure on the connectivity sales and lowers topline growth prospects. Assuming a Q4 exit, we raise 2015/16 pro-forma EPS (ex-options) estimates by 52c/58c to $3.25/$3.53, and PO to $42 from $32 on 13x 2015E PE (prev. 12x) given improved profitability."

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 $34.84 yesterday.

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