Broadcom Started as a “Buy” at Auriga (BRCM)

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Wireless chipmaker Broadcom Corporation ( BRCM ) on Monday saw its coverage initiated with a "Buy" rating by analysts at Auriga.

The firm also set a $55 price target on BRCM shares, which implies a 19% upside to the stock's Monday closing price of $46.05.

An Auriga analyst commented, "We are to some extent concerned that recent multiple expansion across the semiconductor space makes the entire group priced for optimistic growth expectations, and we are wary of a potential inventory build in consumer-related components. However, we see upside to BRCM numbers - our CY12 EPS estimates are 10% above consensus - driven by share gains in baseband and broadband and exposure to secular growth in smart-phones, tablets, and Ethernet."

Broadcom shares rose 70 cents, or +1.5%, in premarket trading Monday.

The Bottom Line
Shares of Broadcom ( BRCM ) have a .69% dividend yield, based on Friday's closing stock price of $46.05. The stock has technical support in the $40 price area. If the shares can continue to uptrend, we see overhead resistance around the $49 price level.

Broadcom Corporation ( BRCM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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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