Benchmark Reiterates Buy, $40 Target on Broadcom

Benchmark remains Buy-rated with a $40 target price on Broadcom (NASDAQ: BRCM) as the company delivers in-line results and guide.

Benchmark says, "We expect the shares to continue to outperform the industry for the balance of 2012 based on: 1) an upward bias to consensus estimates based on the improving chip industry environment, 2) the initial start of 3G share gains at Nokia, 3) continued share gains in product segments such as WiFi (and general connectivity), 4) accretion from the Netlogic acquisition when the deal closes during 2Q12, and 5) P/E multiple expansion based on EPS which exclude Qualcomm royalties (end April 2013)."

BRCM closed at $34.34 a share yesterday.