UPDATE: Auriga Downgrades Broadcom to Hold, Raises PT to $37

Auriga lowers its rating on Broadcom (NASDAQ: BRCM) to Hold from Buy on valuation but raises its price target to $37 from $35 on the consensus beat the company delivered for the quarter on both print and guide.

Auriga notes, "While near-term trends look encouraging as China service provider spending returns, we see longer term challenges in the mobility/connectivity segment and also see increased risks with pending NetLogic (NETL, Hold) acquisition. We raise our CY12 estimates and introduce CY13 estimates. We view the stock as fairly valued at current levels as we expect BRCM to grow earnings at 10% CAGR for the next five years."

BRCM closed at $34.35 a share on Tuesday.