Morgan Stanley Believes Cisco Opportunities Bode Well For Broadcom Corporation

In a report published Wednesday, Morgan Stanley analyst Joseph Moore reiterated an Overweight rating and $44.00 price target on Broadcom Corporation BRCM. In the report, Morgan Stanley noted, “Broadcom's switch business, which represents the majority of its networking segment (34% of revenues and 45% of earnings) is fairly dominant outside of Cisco Systems (CSCO,covered by James Faucette), but penetration of Cisco has been negligible,creating an opportunity. Broadcom has a 65% share in the 35% slice of the market that is non-Cisco, but Cisco has maintained a preference for internal custom silicon that has largely locked Broadcom out. We think that is starting to change, which could drive significant acceleration in revenue and earnings in this segment of Broadcom's business.” Broadcom Corporation closed on Tuesday at $38.34.