Wells Fargo Upgrades Broadcom (BRCM) to Outperform; Valuation And Growth Potential

Wells Fargo upgraded Broadcom (NASDAQ: BRCM) from Market Perform to Outperform, price target range of $32-38 from $34-40.

Wells analyst says, "Broadcom has, in our view one of the broadest and richest product lines in the semiconductor sector, spanning wireless and broadband communications, and communications infrastructure. The company has a proven record of driving exceptional growth by R&D and acquisition, with revenues having expanded from $1.1 billion in 2000 to more than $7 billion in 2011. We believe there is now substantial appreciation potential to the midpoint of our valuation range, even though we are lowering our valuation range with this note. Broadcom has updated December quarter guidance, stating that it now expects sales at the high end of its original guidance. This reduces near-term reporting uncertainty. Our 2011 EPS estimate rises to $1.59 from $1.54 while our 2012 EPS estimate of $1.37 remains unchanged."

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 $28.45 yesterday.

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