Barclays Stays Bullish on Broadcom, but Cuts Target, Estimates (BRCM)

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Wireless chipmaker Broadcom Corporation ( BRCM ) on Wednesday caught some mixed commentary from analysts at Barclays Capital.

The firm maintained its "Overweight" rating on BRCM but lowered its price target from $45 to $42. That new target still suggests a massive 30% upside to the stock's Tuesday closing price of $32.31.

A Barclays analyst noted that despite the target cut, "…we still see a solid 2H for Broadcom led by Apple (Nasdaq: APPL)/Samsung exposure, strength from 3G/LTE/WiFi only devices, gains in cellular at Samsung, and improving ASPs on 40nm combo chip transition, as well as gradual uplift in Broadband/ Infrastructure."

Due to a more modest handset demand forecast, the firm lowered its earnings estimates for BRCM through 2013.

Broadcom shares rose 34 cents, or +1.1%, in premarket trading Wednesday.

The Bottom Line
Shares of Broadcom ( BRCM ) have a 1.24% dividend yield, based on last night's closing stock price of $32.31. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$37 price levels.

Broadcom Corporation ( BRCM ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: BRCM

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