Jefferies Maintains Buy, $45 PT on Broadcom

Jefferies reiterates its Buy rating and $45 target price on Broadcom (NASDAQ: BRCM) as it has confidence on the company's product cycle following management meetings at CES.

Jefferies says, " Management explained that despite investor concern that it would lose share to QCOM in the WiFi connectivity business, it believes that its leadership position in the nextgeneration WiFi standard, 802.11ac, should help it protect share and even translate to better pricing during the transition from 802.11n. The company expects that 3x3 router configurations will ship as early as mid-2012. We think that higher priced connectivity chips will help BRCM topline and gross margins."

BRCM closed at $31.23 per share on Tuesday.