Wedbush Initiates Coverage of Broadcom with Outperform Rating, $40 PT

In a report published earlier today, Wedbush Securities Inc. initiated coverage for Broadcom Corporation

with an Outperform rating and a $40.00 price target. Wedbush went on to say “While we recognize in the near term worry over Europe and the broader macroeconomic environment are driving sentiment for the sector, we think, based upon our relative ratings system, that Broadcom will likely outperform the group. We believe in addition to BRCM's solid financial position, in the 2H:12 and into 2013, BRCM will benefit from (1) continued market share leadership in connectivity combo solutions, (2) market share gains in baseband, and (3) organic growth in its Broadband Communications and Infrastructure & Networking businesses driving revenue growth, stable GM, and profitability.” Broadcom Corporation closed on Friday at $34.06.