Broadcom Upgraded at Benchmark (BRCM)
Benchmark announced on Monday that they have upgraded communications company, Broadcom Corporation(BRCM) to a “Buy” .
The firm reported that they have upgraded BRCM from a “Hold” to a “Buy,” and have given the company a price target of $40. This price target suggests a 20.8% increase over the stock’s current price of $31.68.
An analyst from the firm noted, “like most semiconductor device companies Broadcom is feeling the pinch of a sluggish global economy. However, while the chip industry should contract ~2% during 2012, Broadcom should deliver 3% organic revenue growth for the year (excluding NetLogic acquisition benefit), despite the company’s large size. The company’s growth benefits from a communications-centric product portfolio, one of the fastest growing sub-segments of the chip group.”
“Additionally, the company has a proven track record of gaining market share and has consistently achieved this by: 1) making tech-focused acquisitions of mostly early-stage companies in order to accelerate time-to-market and 2) by integrating analog and mixed signal functionality onto a single die and manufacturing these SoCs on the most advanced standard CMOS technologies.”
Broadcom Corporation shares were mostly flat during premarket trading Monday. The stock is up 7.56% YTD.
The Bottom Line
Shares of Broadcom (BRCM) have a 1.27% dividend yield, based on Friday’s closing stock price of $31.58. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.
Broadcom Corporation(BRCM)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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