UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Broadcom Corporation on Raised Estimates

In a report published Wednesday, Bank of America analyst Vivek Arya reiterated a Buy rating on

, and raised the price target from $42.00 to $45.00. In the report, Bank of America noted, “We maintain Buy on Broadcom as: 1) mobile baseband wind-down (no buyer found) could drive substantial earnings growth; 2) cost savings redirected to doubling buybacks in next year to ~$800mn; and 3) solid trends in the remaining ~67% of remaining infrastructure/broadband segments, where sales surged 17% YoY at 34% OM in Q2. We are conservatively lowering forecasts for remaining mobile connectivity (now modeled down -12.5% YoY in 2015 vs flat before), but opex savings and better resulting mix still drive upside to EPS. We tweak our 2014/15E by 8c/(24c) to $2.76/$3.01, and take our PO to $45 from $42, based on 15x 2015E PE (or 11x PE ex cash), inline with mobile and communication semi comps.” Broadcom Corporation closed on Tuesday at $38.75.