RBC Capital Upgrades Broadcom (BRCM) to Outperform

RBC Capital upgraded Broadcom (NASDAQ: BRCM) from Sector Perform to Outperform with a price target of $40.00 (from $33.00).

Doug Freedman said, "Upgrading to Outperform from Sector Perform as we believe Core business is being undervalued given our expectation of $2.70 (BB+ING). We think management is closely monitoring the progress of LTE investments and is carefully considering implications to ROI in terms of assessing future investments. Stronger contributions, with implied share gains, within its core markets should drive a more attractive GM and OP margin profile. We believe that BRCM could exhibit stronger cost controls going forward, similar to Q1."

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 $29.70 yesterday.

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