UPDATE: Jefferies & Company Reiterates Buy Rating, Lowers PT on Broadcom Corporation

In a report published Wednesday, Jefferies & Company reiterated its Buy rating on Broadcom Corporation BRCM, but lowered its price target from $42.00 to $40.00. Jefferies noted, “BRCM beat on revs and EPS but guided 4Q revs 400 bps below consensus at the mid-point. BRCM has its two seasonally weakest quarters in 4Q and 1Q, but we think its product cycle gives it better-than-average visibility into growth, and its gross margins have a tailwind with transition from 65nm to 40nm products. We view BRCM as a Moore Stress beneficiary, and like the high quality of earnings.” Broadcom Corporation closed on Tuesday at $33.36.