Wireless chipmaker Broadcom Corporation (
) on Monday caught a big upgrade from analysts at Deutsche
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
Broadcom shares rose 56 cents, or +1.9%, in premarket trading
The Bottom Line
Shares of Broadcom (
) 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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.1 out of 5 stars.
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, as well as a detailed explanation of
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