UPDATE: Jefferies Lowers PT on Broadcom Following LTE Asset Acquisition from Renesas

In a report published Thursday, Jefferies analyst Mark Lipacis reiterated a Buy rating on Broadcom Corporation BRCM, but lowered the price target from $38.00 to $34.00. In the report, Jefferies noted, “The LTE asset acquisition from Renesas provides carrier-validated LTE modems and accelerates BRCM's entrance to the space. We view it as a positive as BRCM becomes a second source for LTE modems faster than expected. The acquisition is expected to close in early Q4 2013. We are lowering EPS by $0.02 for 2013 and $0.07 for 2014 as higher gross margins due to better mix are offset by higher OpEx associated with the acquisition. We are buyers of the stock.” Broadcom Corporation closed on Wednesday at $25.18.