Shares of semiconductor company Broadcom Corporation(NASDAQ:BRCM) are falling after the mid-point of the company’s second quarter revenue outlook fell short of analysts’ consensus estimates.
This morning, analyst commentary was mixed. Research firm Needham downgraded Broadcom to Hold from Buy. The firm said Q1 results and Q2 outlook indicated Mobile & Wireless growth is stalling and it noted management backed away from its prior connectivity growth expectations. Conversely, Bernstein thought Broadcom reported strong Q1 results. Bernstein thought the company’s LTE business remains frustrating, but can still perform well over the longer term. The firm thought the stock’s valuation was attractive. It raised its price target on the shares to $35 from $33, and kept an Outperform rating on the stock.
In morning trading, Broadcom fell $1.56, or about 5%, to $29.58 on heavy trading volume. Including today’s pull back, the stock has lost approximately 14% over the past twelve months.
Broadcom Corporation(NASDAQ:BRCM) has a 50 day moving average of $30.66 and a 200 day moving average of $28.92. The current quarter consensus EPS is $2.45.
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