Goldman Sachs analyst James Schneider this morning added Buy-rated Broadcom (BRCM) to the firm’s Conviction Buy List. He has a $44 target on the stock, which closed last week at $35.74.
“We see an attractive entry point for a stock with multiple growth drivers around the theme of mobile data, at a time when market expectations (especially for Q4) remain very low and valuation is still attractive,” he writes in a research note.
Schneider sees three key drivers for the stock:
- Increasing smart phone penetration.
- Tablet growth, including cannibalization of notebooks.
- The build-out of mobile data networks to support all of the additional devices.
BRCM this morning is up 71 cents, or 2%, to $36.45.
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