UPDATE: RBC Upgrades Broadcom

RBC on Monday upgraded

to Outperform from Sector Perform. RBC analyst Doug Freedman believes the core business is undervalued given the expectation of $2.70 (BB+ING). Freedman states, "We think management is closely monitoring the progress of LTE investments and is carefully considering implications to ROI in terms of assessing future investments." Freedman continued to say, "Stronger contributions, with implied share gains, within its core markets should drive a more attractive GM and OP margin profile. We believe that BRCM could exhibit stronger cost controls going forward, similar to Q1." Broadcom shares were up $0.51 to $30.21 from the previous close of $29.70 at last check.