Broadcom Corp. (NASDAQ:BRCM) was downgraded by Goldman Sachs Group Inc. from a “buy” rating to a “neutral” rating in a research note issued on Monday, TheFlyOnTheWall.com reports. They currently have a $30.00 price objective on the stock, down from their previous price objective of $36.00. Goldman Sachs Group Inc.’s target price indicates a potential upside of 15.12% from the stock’s previous close.
The analysts wrote, “We downgrade Broadcom to Neutral from Buy. Our Buy thesis had been predicated on Broadcom driving long-term growth by building scale, momentum, and profitability in its baseband SoC business. However, given recent setbacks at key customer Samsung and limited visibility into further customer diversification, we think the stock is unlikely to outperform until Broadcom demonstrates that it has regained momentum, which we think is unlikely until 2H14. We also believe market concerns on connectivity market share, while likely overdone, will weigh on the stock. Since we upgraded to Buy on 3/17/10, BRCM is down 22% vs. the S&P 500 up 46%.”
Broadcom Corp. (NASDAQ:BRCM) traded up 1.11% on Monday, hitting $26.35. Broadcom Corp. has a 1-year low of $26.03 and a 1-year high of $37.85. The stock’s 50-day moving average is currently $31.23. The company has a market cap of $15.257 billion and a price-to-earnings ratio of 36.09.
Broadcom Corp. (NASDAQ:BRCM) last issued its quarterly 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.
Other equities research analysts have also recently issued reports about the stock. Analysts at BNP Paribas cut their price target on shares of Broadcom Corp. from $45.00 to $26.00 in a research note to investors on Tuesday, August 6th. Separately, analysts at Piper Jaffray Cos. cut their price target on shares of Broadcom Corp. from $47.00 to $34.00 in a research note to investors on Monday, August 5th. They now have an “overweight” rating on the stock. Finally, analysts at Drexel Hamilton upgraded shares of Broadcom Corp. from a “hold” rating to a “buy” rating in a research note to investors on Monday, August 5th. They now have a $38.00 price target on the stock.
Two investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and twenty-six have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average price target of $36.05.
In other Broadcom Corp. news, CFO Eric Brandt sold 2,500 shares of the company’s stock in a transaction dated Monday, August 5th. The shares were sold at an average price of $26.98, for a total value of $67,450.00. Following the transaction, the chief financial officer now directly owns 424,961 shares in the company. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.
Broadcom Corporation (NASDAQ:BRCM) is a global semiconductor solution for wired and wireless communications.