Broadcom: Caris Cuts Target to $19 on Weak Q4 Demand
After falling $11 to $17.19 yesterday, shares of chipmaker Broadcom (BRCM) are staging a mild recovery this morning, up 56 cents, or 3.26 percent, at $17.75, despite a price target cut by Caris & Co.’s Betsy Van Hees. Hees cut her target to $19 from $28 (barn door, anyone?) over concerns the company will offer a disappointing outlook for its fourth quarter when it reports 3Q results on Oct. 21. Van Hees says pressure upon average selling prices of chips is increasing across the industry because “order rates for Q4 are below typical seasonal patterns largely due to weakening end market demand.”
