We Continue To See Significant Upside Remaining In Broadcom Shares, Says Deutsche Bank


In a research note sent to investors today, Deutsche Bank analyst Ross Seymore reiterated a Buy rating on Broadcom (NASDAQ:BRCM) with a price target of $47, which represents a potential upside of 14% from where the stock is currently trading.

Seymore commented: “Earlier this week we hosted a number of investor meeting with BRCM’s CFO Eric Brandt, Dan Marotta, GM of Broadband & Connectivity Group, and VP Treasury and Investor Relations Peter Andrews. We continue to believe BRCM can deliver overall revenue growth that is slightly above the semi sector in general (+5-7% vs sector avg +5%), as the company focuses on the differentiated and defensible aspects of their core business.” The analyst added, We continue to see significant upside remaining in BRCM shares as we expect the posttransition company to yield a very attractive profile (slightly faster than sector growth, improved GM/OM, higher cash returns etc) that should warrant a valuation much more in line with high-quality peers (2015E ex-cash P/E of 15x avg. vs. BRCM at 11x today). With potential upside to valuation and Street ests, as well as an upcoming Dec 9th Analyst Meeting catalyst (margin and cash return targets likely raised), we reiterate our Buy rating and $47 P/T.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ross Seymore has a total average return of 29.2% and a 78.4% success rate. Seymore has a 15.4% average return when recommending BRCM, and is ranked #35 out of 3354 analysts.

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