Oppenheimer Has Outperform On IDEX Corporation

Oppenheimer is out with a research report on Broadcom BRCM and it has an Outperform rating and a $55 price target on shares. In a note to clients, Oppenheimer writes, "We are reiterating our Outperform rating and $55 PT following BRCM's announced acquisition of NETL for $50/shr or $3.7B (ex-cash) in an all-cash transaction this morning. NETL provides BRCM with a strong presence in the nascent/booming multicore processor market. Additionally, NETL's KBP business (~60% of revs) is highly complementary to BRCM's high speed ethernet product line-up. Despite paying a 57% premium to Friday's closing price, mgmt expects the transaction to be ~$0.10 accretive ($0.07 ex-synergies) to CY12 non-GAAP EPS. The deal is expected to close in 1H12 and BRCM will fund the transaction with cash on-hand. We applaud the deal as synergistic/strategic and believe NETL was BRCM's best choice from a roadmap, GM and valuation perspective." Shares of BRCM are down 92 cents to $32.52, a loss of 2.75%.