UPDATE: Topeka Capital Markets Initiates Coverage on Broadcom Corporation with Buy Rating, $42 PT on Confident Outlook

In a report published Friday, Topeka Capital Markets analyst Suji De Silva initiated coverage on

with a Buy rating and $42.00 price target. In the report, Topeka Capital Markets noted, “We are initiating coverage of Broadcom with a Buy rating and a $42.00 price target. BRCM has had a long history of steadily delivering very impressive product gross margins of ~50+%, even after adjusting for the benefit of licensing revenue. As a result of healthy operating leverage and efficient R&D spending, BRCM has consistently delivered operating margins north of 20%. We continue to expect BRCM to outgrow communications semiconductor end market growth.” Broadcom Corporation closed on Thursday at $34.96.