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

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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.

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Referenced Stocks: AAPL , BRCM

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