UPDATE: Oppenheimer Downgrades Broadcom Corporation to Perform, Removes PT on Limited Earnings Leverage

In a report published Monday, Oppenheimer analyst Rick Schafer downgraded the rating on

from Outperform to Perform, and removed the $37.00 price target. In the report, Oppenheimer noted, “We are downgrading shares of BRCM to Perform from Outperform and removing our price target. Our long thesis centered on the success of BRCM's LTE BB efforts. However, following the 12/10 analyst day, we are convinced that material top-line contribution from LTE is unlikely in the near/medium term. Rising structural risks to BRCM's core connectivity business further tilt risk/reward unfavorably, in our view. QCOM, and in-house solutions from both Apple/Samsung, present real long-term connectivity risks. A dearth of catalysts/drivers in the model make a return to peak CY12 earnings tough to forecast. And with only 30-35% of FCF generated onshore, there is limited opportunity to significantly raise cash returns to shareholders. Downgrade to Perform.” Broadcom Corporation closed on Friday at $28.01.