Broadcom: Charter Equity Turns Bullish; Cites Nokia Deal
Charter Equity Research analyst Edward Snyder today lifted his rating on Broadcom (BRCM) to Buy from Market Perform. In his research note, Snyder said he expects to see an increase this fall in the company’s revenue from the wireless segment as volumes rise in shipments of EDGE system-on-a-chip components to Nokia (NOK) for its low-end phones.
Snyder says the part had been delayed by a “noise issue” that now appears to be corrected. Snyder says the total EDGE market could be in the $200 million to $250 million range; he says the low-cost portion targeted by Broadcom will be just a small fraction of the market, but that successful deployment of the EDGE SOC “would ensure Broadcom’s position in the top echelon of baseband providers.”