Broadcom Corp. (NASDAQ:BRCM) was downgraded by analysts at UBS AG from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Friday, TheFlyOnTheWall.com reports. They currently have a $30.00 price target on the stock, down from their previous price target of $35.00. UBS AG’s target price would suggest a potential upside of 8.58% from the company’s current price.
The analysts wrote, “We are downgrading Broadcom to a Neutral rating from Buy owing to: 1) slowing smartphone market growth that could limit upside in wireless connectivity growth, 2) headline risk from combo connectivity chip share loss albeit in low-end mobile devices where Broadcom still has low penetration, 3) moderate cellular SoC growth prospects in the coming year given 3G competition and limited 4G SoC shipments till 2H14. On expectations for greater cellular SoC competition, we lower gross margin and EPS modestly for C14-17E.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Stifel Nicolaus cut their price target on shares of Broadcom Corp. from $45.00 to $38.00 in a research note to investors on Thursday, July 25th. They now have a “buy” rating on the stock. Separately, analysts at Societe Generale cut their price target on shares of Broadcom Corp. from $36.50 to $32.00 in a research note to investors on Thursday, July 25th. They now have a “hold” rating on the stock. Finally, analysts at Sanford C. Bernstein cut their price target on shares of Broadcom Corp. from $41.00 to $36.00 in a research note to investors on Thursday, July 25th. They now have an “outperform” rating on the stock.
Shares of Broadcom Corp. (NASDAQ:BRCM) traded down 1.63% during mid-day trading on Friday, hitting $27.18. Broadcom Corp. has a one year low of $26.58 and a one year high of $37.85. The stock’s 50-day moving average is currently $32.4. The company has a market cap of $15.737 billion and a P/E ratio of 38.27.
Broadcom Corp. (NASDAQ:BRCM) last released its earnings data on Tuesday, July 23rd. The company reported $0.70 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.69 by $0.01. The company had revenue of $2.09 billion for the quarter, compared to the consensus estimate of $2.10 billion. During the same quarter in the prior year, the company posted $0.72 earnings per share. The company’s quarterly revenue was up 6.0% on a year-over-year basis. Analysts expect that Broadcom Corp. will post $2.74 EPS for the current fiscal year.
In other Broadcom Corp. news, EVP Rajiv Ramaswami sold 2,500 shares of the stock in a transaction dated Monday, July 29th. The shares were sold at an average price of $27.35, for a total transaction of $68,375.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
Broadcom Corporation (NASDAQ:BRCM) is a global semiconductor solution for wired and wireless communications.
