Broadcom Corp. Downgraded by Oppenheimer to “Market Perform” (BRCM)
Broadcom Corp. (NASDAQ:BRCM) was downgraded by investment analysts at Oppenheimer from an “outperform” rating to a “market perform” rating in a note issued to investors on Monday, TheFlyOnTheWall.com reports. They currently have a $37.00 target price on the stock. Oppenheimer’s target price indicates a potential upside of 32.10% from the company’s current price.
The analysts wrote, “We are downgrading shares of BRCM to Perform from Outperform and removing our price target. Our long thesis centered on the success of BRCM’s LTE BB efforts. However, following the 12/10 analyst day, we are convinced that material top-line contribution from LTE is unlikely in the near/medium term. Rising structural risks to BRCM’s core connectivity business further tilt risk/reward unfavorably, in our view. QCOM, and in-house solutions from both Apple/Samsung, present real long-term connectivity risks. A dearth of catalysts/drivers in the model make a return to peak CY12 earnings tough to forecast. And with only 30-35% of FCF generated onshore, there is limited opportunity to significantly raise cash returns to shareholders. Downgrade to Perform.”
A number of other firms have also recently commented on BRCM. Analysts at Deutsche Bank raised their price target on shares of Broadcom Corp. from $31.00 to $34.00 in a research note to investors on Wednesday, December 11th. They now have a “buy” rating on the stock. Separately, analysts at UBS AG reiterated a “hold” rating on shares of Broadcom Corp. in a research note to investors on Wednesday, December 11th. They now have a $29.00 price target on the stock, up previously from $27.00. Finally, analysts at Evercore Partners reiterated an “overweight” rating on shares of Broadcom Corp. in a research note to investors on Wednesday, December 11th. They now have a $34.00 price target on the stock, up previously from $30.00. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and twenty-eight have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $32.37.
Shares of Broadcom Corp. (NASDAQ:BRCM) traded up 2.36% on Monday, hitting $28.67. 5,751,268 shares of the company’s stock traded hands. Broadcom Corp. has a 52-week low of $23.25 and a 52-week high of $37.85. The stock’s 50-day moving average is $27.00 and its 200-day moving average is $28.79. The company has a market cap of $16.285 billion and a P/E ratio of 32.31.
Broadcom Corp. (NASDAQ:BRCM) last released its earnings data on Tuesday, October 22nd. The company reported $0.76 EPS for the quarter, beating the Thomson Reuters 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 last year, the company posted $0.79 earnings per share. Broadcom Corp.’s revenue was up .8% compared to the same quarter last year. Analysts expect that Broadcom Corp. will post $2.68 EPS for the current fiscal year.
Broadcom Corporation (NASDAQ:BRCM) is a global semiconductor solution for wired and wireless communications.
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