Deutsche Bank Upgrades Broadcom to “Buy”; Bullish on Chipmakers for 2012 (BRCM)

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Wireless chipmaker Broadcom Corporation ( BRCM ) on Monday caught a big upgrade from analysts at Deutsche Bank.

The firm said it boosted its rating on BRCM from "Hold" to "Buy" with a $35 price target. That target suggests a 16% upside to the stock's Friday closing price of $30.72.

Deutsche Bank noted it believes that microchip stocks should outperform the markets in 2012, as industry fundamentals continue to improve. An analyst commented, "We are upgrading BRCM as we believe NT expectations are sufficiently low, concerns on connectivity share loss are overblown, and valuation looks compelling relative to historical ranges and vs. large cap growth peers. We have long viewed BRCM as a core semi holding given its superior growth record and view the recent sell-off as an opportunity to accumulate the stock at a reasonable price with a favorable risk/reward."

Broadcom shares rose 56 cents, or +1.9%, in premarket trading Monday.

The Bottom Line
Shares of Broadcom ( BRCM ) have a 1.19% dividend yield, based on Friday's closing stock price of $30.14. The stock has technical support in the $25-$26 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.

Broadcom Corporation ( BRCM ) is not recommended at this time, holding a DARS™ Rating of 3.1 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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