Broadcom Shares Tumble as Pacific Crest Downgrades, Raises Concerns Related to Co. Involvement with Apple
Shares of Broadcom (NASDAQ: BRCM) are one of the Semi stocks leading the sector lower Tuesday morning following several news items. The stock last traded at $31.96, down nearly 4 percent from Monday's close.
An analyst at Pacific Crest, Michael McConnell, downgraded the stock from Outperform to Sector Perform and removed his $41 price target.
McConnell pointed at the latest teardowns of Samsung devices which suggested Broadcom has lost sockets. He believes Apple (NASDAQ: AAPL) may seek in-house connectivity solutions rather than purchasing from Broadcom, citing recent news from Apple it has been hiring former Texas Instruments (NYSE: TXN) OMAP/connectivity employees.
Despite the new Sector Perform rating, McConnell's price target implies potential upside of nearly 30 percent from where shares of Broadcom are currently trading.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.