FBR Capital Maintains Outperform on Broadcom After Analyst Day

FBR Capital Markets has published a research report on Broadcom BRCM after the company's Analyst Day which yielded higher guidance. In the report, FBR Capital writes, "terday, Broadcom raised 4Q11 financial guidance and hosted its annual analyst day in New York. We do not think investors expected a guidance raise given the difficult macro environment and negative preannouncements from various semiconductor bellwethers, and some investors actually expected Broadcom to lower 4Q11 guidance given recent share price action. At its analyst day, Broadcom reviewed key products and strategies in the firm's mobile & wireless, broadband, and enterprise segments, and announced increased investments into cellular and wireless infrastructure in 2012 to capture more top-line growth in 2013–2014. The firm highlighted a number of attractive baseband socket wins with Samsung, Nokia, ZTE, Alcatel, and others, a positive as we look to Broadcom's new Android-based smartphone basebands to drive top-line growth. BRCM shares have underperformed meaningfully recently, with some investor concern about the firm's connectivity sockets in future Apple iPad or iPhone products." FBR Capital maintains its Outperform rating and $45 price target on Broadcom, which closed yesterday at $28.45.