Benchmark Maintains Hold on Broadcom

Benchmark reiterates its Hold rating on Broadcom

as the company shares may not have completely discounted margin headwinds ahead. Benchmark notes, "We recently cut our rating on shares of Broadcom from "Buy" to "Hold" following a ~30% year-to-date appreciation in shares. We felt the share price was already discounting an upward inflection in a semiconductor mini-cycle. On the other hand, the current share price may not discount the gross margin headwind Broadcom will face in mid-FY13 when Qualcomm royalties expire." BRCM closed at $37.97 a share yesterday.