Denver, CO, 06/05/2014 (Stocksntrade) – Broadcom Corporation (NASDAQ:BRCM) has seen series of analyst upgrades throughout the week with an exception of equity analysts at Stifel who downgraded the stock from a “buy” rating to a “hold” rating in a research note issued on Tuesday, June 3, 2014. Investment analysts at FBR Capital Markets maintained their “outperform” rating for the stock and increased their price target for the stock from $35 to $39, in a research note issued on Tuesday. Analysts at research firm, Drexel Hamilton upgraded their rating from a “hold” to a “buy” rating and also raised their price target for the stock to $45. The upgrade was mainly driven the company’s strengths to report better earnings from its core communications, infrastructure as well as broadband acceleration.
Broadcom Corporation (NASDAQ:BRCM) also received an upgrade from equity analysts at CLSA from an “outperform” rating to a “buy” rating and also raised a price target from $34 to $42. The upgrade was to reflect Broadcom’s potential earnings power, dividend and buyback potential as well as relative valuation. On Monday, equity analysts at Topeka Capital Markets also raised their price target for the stock to $40 from a previously held target of $35. The analysts currently maintain a “buy” rating for the stock.
The Stock Booster
Broadcom Corporation (NASDAQ:BRCM) recently announced to sell its cellular baseband business which the company believes will help it save $700 million dollars a year. In addition, the sell is not expected to impact the company’s current fiscal guidance as the company continues to expect revenue of $2 to $2.1 billion with product gross margin to remain in line with its previous guidance.
The stock of Broadcom Corporation has been assigned a “buy” rating by twenty one analysts; a “hold” rating by fourteen analysts; and a “sell” rating by one analyst. Overall the stock has a consensus rating of “buy” with an average price target of $35.84.
On Wednesday, the stock gained 3.32% and closed at $37.07 while hitting a fresh yearly high of $37.14.
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