UPDATE: Wedbush Downgrades Broadcom Corporation to Neutral, Lowers PT Following Much Choppier-Than-Anticipated Mobile Market

In a report published Wednesday, Wedbush analyst Betsy Van Hees downgraded the rating on Broadcom Corporation BRCM from Outperform to Neutral, and lowered the price target from $33.00 to $27.00. In the report, Wedbush noted, “We downgrade Broadcom to a NEUTRAL rating from OUTPERFORM and reduce our PT to $27. While we got the Q3 beat we were looking for and we expected Q4 guide to be down, it was much worse than we expected primarily due to an even choppier mobile market from intense competition in 3G, inventory corrections, and connectivity share loss. We expect challenges in the mobile business to persist into the 1H and despite our high expectations for LTE share gains; we now see 2014 as a year of rebuilding rather than a year of growth. We look for the stock to trade in-line with the group until there is better visibility on (1) revenue trajectory for 4G baseband products, (2) reacceleration of wireless connectivity share gains, and (3) traction in emerging handset markets.” Broadcom Corporation closed on Tuesday at $27.14.