Wireless chipmaker Broadcom Corporation (
) on Tuesday saw its "Outperform" rating reiterated by analysts at
FBR Capital Markets.
The firm also left its $42 price target for BRCM intact, which
represents an expected 25% upside to the stock's Monday closing
price of $33.70.
An FBR analyst commented, "Recent checks suggest Broadcom's 3Q
revenues are tracking near the midpoint of its revenue guidance of
$1.7B-$1.8B (+6%-12% QOQ), better than many peers. We hear of
strength for "combo" chips into smartphones and Apple (Nasdaq:
AAPL) products, set top box chips into Europe and Asia, and others
like Ethernet networking chips and GPS chips into automobiles. We
hear of weakness for Wi-Fi chips going into PCs (still) and
consumer routers, and baseband chips."
Broadcom shares were mostly flat in premarket trading
The Bottom Line
Shares of BRCM have a .95% dividend yield, based on last night's
closing stock price of $33.70. The stock has technical support in
the $30-$32 price area. If the shares can firm up, we see overhead
resistance around the $36-$38 price levels. We would remain on the
sidelines for now.
Broadcom Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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