Susquehanna Upgrades Broadcom; Raises PT (BRCM)

Susquehanna reported on Tuesday that it has raised its rating on Broadcom Corporation (BRCM).

The firm has upgraded BRCM from “Neutral” to “Positive,” and has lifted the company’s price target from $33 to $35. This price target suggests a 23% upside from the stock’s current price of $26.91.

Analyst Chris Caso commented: “Our downgrade of BRCM in May was predicated on already high Street expectations on handsets and no notable improvement in networking to drive upside. We think expectations and the stock price have now been sufficiently reset ahead of what we expect to be catalysts in 2014 – including the iPhone 6 product cycle, potential improvement in networking and the impact from the recent Renesas acquisition. In addition, after several years of overspending on their handset initiatives, we think we are now closer to the point where the company either captures a return on that investment or is forced to moderate spending – either of which benefit profitability. We see the upcoming December analyst meeting as a potential intermediate catalyst.”

Broadcom shares were up 38 cents, or 1.41%, during pre-market trading Tuesday. The stock is down 19% YTD.