Broadcom price target raised to $310 from $293 at Piper Jaffray
Piper Jaffray analyst Harsh Kumar lowered his estimates for Broadcom to reflect weakness in the data center, storage, and handset markets. For the January quarter, he thinks Broadcom is likely to make or beat the consensus earnings estimate due to CA cost synergies and share repurchases while delivering a small sales miss. For the April quarter guidance, Kumar believes Broadcom will slightly miss Street earnings estimates while also missing consensus revenue estimate. He expects the wireless, storage, and wired business segments to be weaker than previously expected, as global smartphone softness, slower data center spending, and a storage inventory correction impact the company. The analyst, however, boosted his price target to $310 and reiterates an Overweight rating on Broadcom.