UPDATE: Nomura Reiterates Buy Rating, Raises PT on Broadcom Corporation Following Q2 Sales/Guidance

In a report published Wednesday, Nomura analyst Romit Shah reiterated a Buy rating on

, and raised the price target from $33.00 to $36.00. In the report, Nomura noted, “Broadcom reported weaker-than-expected Q2 sales and guidance, which, while disappointing, is also likely to fuel the bear case that the company is not well positioned in mobile. That said, we continue to recommend the stock given a compelling valuation of 10x earnings plus over $4bn in cash. Mobile and Wireless was weaker than expected, declining 3% to $967mn, compared with our estimate of 5% growth. Q3 revenue guidance of $2.13bn (up 2% qoq), was also below our estimate of $2.20bn and consensus of $2.25bn. We see mobile and wireless growing mid single digits sequentially and below seasonal patterns of 10-20% growth. Implied EPS of $0.70 is lower than our estimate of $0.74 (consensus at $0.76).” Broadcom Corporation closed on Tuesday at $31.83.