FBR Capital Markets Sees Broadcom's Analyst Day as Helping Validate the LTE Story

In a report published Wednesday, FBR Capital Markets analyst Christopher Rolland reiterated an Outperform rating and $29.00 price target on Broadcom Corporation BRCM. In the report, FBR Capital Markets noted, “On Tuesday, December 10, Broadcom held its annual analyst day in New York. Investors were anticipating a de minimis update to guidance but instead received something slightly more substantial, as management increased 4Q13 revenue guidance by $5 million and gross margins by 12.5 bps and lowered opex by $10 million. Upside came from networking, an area we have been excited about as our 2H13 checks for Trident II have been overwhelmingly strong. Broadcom importantly said it expects its business in connectivity to grow in 2014, and demonstrated a strong value proposition for its combos as it claims to smaller dies size, greater integration, and 3x the data receive performance over their competition..” Broadcom Corporation closed on Tuesday at $28.51.