Market Overview

Brean Capital: Broadcom 'All Grown Up Now'


Mike Burton of Brean Capital maintained a Buy rating on Broadcom Corporation (NASDAQ: BRCM) on Wednesday with a price target raised to $53 from a $46 following the company's Analyst Day.

Burton notes that Broadcom updated its guidance for the December quarter by raising its revenue expectations along with its operating expenditure spending.

Broadcom guided its fourth quarter revenue down 8 percent quarter-over-quarter to $2.075 billion due to what the analyst describes as “normal seasonality.” Operating expenditure was guided to “down $40 million” from “down $50 million” due to mis-forecasting the timing of how quickly some of the baseband costs were coming out of the model.

Burton favors owning shares of Broadcom as the company will continue to benefit from cost reductions from wind-down of its baseband business in the coming years.

The analyst also adds that the company announced a “handful” of shareholder friendly initiatives (including a focus on decreasing share dilution and increasing cash flow via tax strategies) as the company transitions from a growth-oriented company to a mature and stable company.

Latest Ratings for BRCM

Jan 2016DowngradesOutperformMarket Perform
Oct 2015DowngradesBuyNeutral
Aug 2015DowngradesOutperformNeutral

View More Analyst Ratings for BRCM
View the Latest Analyst Ratings

Posted-In: Analyst Day baseband Brean Capital Mike Burton Shareholder FriendlyAnalyst Color Price Target Analyst Ratings


Related Articles (BRCM)

View Comments and Join the Discussion!

Latest Ratings

POWLSidoti & Co.Maintains47.0
XDeutsche BankInitiates Coverage On121.0
WTEBMO CapitalMaintains18.0
DOLBMO CapitalMaintains50.0
NABMO CapitalMaintains69.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Mizuho Securities Expects Solid Q3 Results For Lululemon Athletica

UPDATE: Layne Christensen Posts Narrower Q3 Loss, Appoints New CEO