Broadcom Corp. Downgraded to “Neutral” at Wedbush (BRCM)
Broadcom Corp. (NASDAQ:BRCM) was downgraded by equities research analysts at Wedbush from an “outperform” rating to a “neutral” rating in a research note issued to investors on Wednesday, TheFlyOnTheWall.com reports. They currently have a $27.00 price target on the stock, down from their previous price target of $33.00. Wedbush’s price objective indicates a potential downside of 0.52% from the stock’s previous close.
The analysts wrote, “We downgrade Broadcom to a NEUTRAL rating from OUTPERFORM and reduce our PT to $27. While we got the Q3 beat we were looking for and we expected Q4 guide to be down, it was much worse than we expected primarily due to an even choppier mobile market from intense competition in 3G, inventory corrections, and connectivity share loss. We expect challenges in the mobile business to persist into the 1H and despite our high expectations for LTE share gains; we now see 2014 as a year of rebuilding rather than a year of growth. We look for the stock to trade in-line with the group until there is better visibility on (1) revenue trajectory for 4G baseband products, (2) reacceleration of wireless connectivity share gains, and (3) traction in emerging handset markets.”
BRCM has been the subject of a number of other recent research reports. Analysts at Cowen and Company cut their price target on shares of Broadcom Corp. from $33.00 to $31.00 in a research note to investors on Wednesday. They now have an “outperform” rating on the stock. Separately, analysts at Drexel Hamilton initiated coverage on shares of Broadcom Corp. in a research note to investors on Monday. They set a “hold” rating on the stock. Finally, analysts at Benchmark Co. reiterated a “buy” rating on shares of Broadcom Corp. in a research note to investors on Friday, October 18th. They now have a $35.00 price target on the stock. One analyst has rated the stock with a sell rating, sixteen have assigned a hold rating and twenty-five have assigned a buy rating to the company’s stock. Broadcom Corp. has a consensus rating of “Buy” and a consensus price target of $33.74.
Shares of Broadcom Corp. (NASDAQ:BRCM) traded down 4.97% during mid-day trading on Wednesday, hitting $25.79. The stock had a trading volume of 18,893,936 shares. Broadcom Corp. has a one year low of $23.25 and a one year high of $37.85. The stock has a 50-day moving average of $26.19 and a 200-day moving average of $32.3. The company has a market cap of $14.932 billion and a P/E ratio of 37.59. Broadcom Corp. also was the target of unusually large options trading activity on Monday. Traders purchased 23,511 call options on the stock. This represents an increase of approximately 216% compared to the average volume of 7,429 call options.
Broadcom Corp. (NASDAQ:BRCM) last released its earnings data on Tuesday, October 22nd. The company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.69 by $0.07. The company had revenue of $2.15 billion for the quarter, compared to the consensus estimate of $2.13 billion. During the same quarter in the previous year, the company posted $0.79 earnings per share. The company’s revenue for the quarter was up .8% on a year-over-year basis. On average, analysts predict that Broadcom Corp. will post $2.62 earnings per share for the current fiscal year.
Broadcom Corporation (NASDAQ:BRCM) is a global semiconductor solution for wired and wireless communications.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.