FBR Capital Markets Maintains Broadcom at Outperform, $43 PT on Encouraging Channel Checks

FBR Capital Markets reiterates its Outperform rating and $43 price target on Broadcom

on baseband ramp-up and Apple catalyst in the second half of the year. FBR Capital Markets notes, "Recent Broadcom checks are fairly resilient, with 2Q12 revenues likely tracking near or above its guidance midpoint ($1.9B −$2.0B) despite macro weakness. We think connectivity and mobile shipments are reasonably robust excluding Apple, with Samsung baseband ramps a tailwind. Cable set top box shipments should recover some too, a plus. While early still for 3Q12, we think Broadcom can guide revenues near or in line with aggressive Street estimates of $2.13B (+9% QOQ), with 3Q12 revenue guidance likely at $2.0B−$2.1B or $2.05B−$2.15B. We note recent macro weakness will likely dampen supply chain restocking trends, a relative headwind." BRCM closed at $ on Monday.