FBR Capital Maintains “Outperform” Rating on Broadcom (BRCM)

Share |

Wireless chipmaker Broadcom Corporation ( BRCM ) 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 Tuesday.

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 ( 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.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: AAPL , BRCM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com