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Broadcom Shares Tumble as Pacific Crest Downgrades, Raises Concerns Related to Co. Involvement with Apple

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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.

Latest Ratings for BRCM

DateFirmActionFromTo
May 2015Morgan StanleyDowngradesOverweightEqual-weight
May 2015SusquehannaDowngradesPositiveNeutral
May 2015MacquarieDowngradesOutperformNeutral

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