Broadcom Downgraded to “Hold” at Benchmark Co. (BRCM)

By
A A A
Share |

Wireless chipmaker Broadcom Corporation ( BRCM ) on Monday caught a big downgrade from analysts at Benchmark Co.

The firm said it cut its rating on BRCM from "Buy" to "Hold," citing valuation concerns.

A Benchmark analyst commented, "Shares have increased 28% year-to-date and have approached our previous price target of $40. To compare, the SOX (Philadelphia Semiconductor Index) has risen 18% YTD…Excluding the Qualcomm (Nasdaq: QCOM) royalties, investors may assume Broadcom's earnings power, in optimal industry conditions, to approximate $2.60 to $2.70. Based on this range, shares are trading at 15.0x EPS and are in line with other large-cap semiconductor and tech hardware companies."

Broadcom shares posted small gains in premarket trading Monday.

The Bottom Line
Shares of Broadcom ( BRCM ) have a 1.08% dividend yield, based on Friday's closing stock price of $37.00. The stock has technical support in the $31-$35 price area. If the shares can firm up, we see overhead resistance around the $38-$40 price levels.

Broadcom Corporation ( BRCM ) is not recommended at this time, holding a Dividend.com 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.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: BRCM

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

Most Active by Volume

88,066,694
  • $97.19 ▲ 2.61%
58,241,731
  • $71.29 ▲ 2.92%
51,058,864
  • $44.87 ▲ 0.09%
48,927,829
  • $28.75 ▲ 0.81%
46,551,917
    $15.52 unch
40,249,498
  • $3.46 ▼ 0.57%
38,633,031
  • $22.43 ▼ 9.63%
38,240,825
  • $34.71 ▲ 3.30%
As of 7/23/2014, 04:04 PM