Benchmark announced on Monday that they have upgraded
communications company, Broadcom Corporation(
) 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 (
) 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.
)is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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