Jefferies Reiterates “Buy” Rating for Broadcom; iPhone 4S Should Boost Earnings (BRCM)

By Staff,

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Wireless chipmaker Broadcom Corporation ( BRCM ) on Friday caught some positive comments from analysts at Jefferies & Co.

The firm reiterated its "Buy" rating on BRCM as well as its $46 price target, suggesting a 24% upside to the stock's Thursday closing price of $37.02.

A Jefferies analyst commented, "Based on the teardown of iPhone 4S (Nasdaq: AAPL) by, we believe that BRCM is the supplier of Bluetooth+Wi-Fi combo chip, and remains the vendor of choice for connectivity of the best-selling smartphones. We continue to think that BRCM is a good low-risk way of investing in the growth of smartphones. We reiterate our rating and suggest buying in front of earnings season."

Broadcom shares 51 cents, or +1.4%, in premarket trading Friday.

The Bottom Line
Shares of Broadcom ( BRCM ) have a .97% dividend yield, based on last night's closing stock price of $37.02. The stock has technical support in the $32-$34 price area. If the shares can firm up, we see overhead resistance around the $38-$40 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 Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: BRCM

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