Market Overview

Pair Trade Suggested By Oppenheimer Rating Changes

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Oppenheimer rating changes in the semiconductor space may provide a pair trade setup.

Marvell Technology (NASDAQ: MRVL) was downgraded from Market Perform to Underperform and Broadcom (NASDAQ: BRCM) was upgraded from Market Perform to Outperform.

Weak margins are the main reason for the downgrade of Marvell. Analyst Rick Schafer says that the company is giving up its margins to boost revenue growth while several units lag the industry averages.

Related Link: Oppenheimer Upgrades Broadcom to Outperform

Schafer thinks Broadcom will grow its business by at least mid-single digits in 2014. This estimate comes shortly after Broadcom announced that it would be exiting its baseband business.

Traders have picked up on the pair trade opportunity and shares are responding. Marvell was last trading down 2.4 percent, while Broadcom shares have gained 1.2 percent.

Latest Ratings for BRCM

DateFirmActionFromTo
Jan 2016DowngradesOutperformMarket Perform
Oct 2015DowngradesBuyNeutral
Aug 2015DowngradesOutperformNeutral

View More Analyst Ratings for BRCM
View the Latest Analyst Ratings

Posted-In: Oppenheimer Rick SchaferAnalyst Color Upgrades Downgrades Analyst Ratings

 

Related Articles (BRCM + MRVL)

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