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Max Rapaport is a corporate and telecommunications attorney with an avid interest in the universe of small cell technologies, including pico cell, femto cell and microcellular networks, generally. He also publishes articles on the Website related to developments in these areas.... More
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  • Evercore Partners Initiates Coverage On Broadcom With Buy Rating And $40 Price Target, Noting Small Cell Initiatives  0 comments
    Jan 7, 2013 7:48 AM | about stocks: AVGO

    In a report dated January 6, Evercore Partners initiated coverage of Broadcom with a Buy rating and current price target of $40. Among the core factors cited by Evercore in this report, as bolstering Broadcom's market position is the company's strength in small cells.

    Specifically, according to Evercore, "BRCM is the market leader in the highly fragmented STB and broadband access market [and they]are also expanding into access products (i.e., small cell). " Among the core macro factors noted by the report's authors, as leading to this expansion is the bandwidth explosion. Specifically, Evercore notes, the "Bandwidth explosion: Exponential growth in bandwidth will drive revenues upward as service providers are forced to upgrade speed (backhaul, data rates) and (macro / small cells)."

    A further growth drive, the authors note,r is that "[s]ervice providers need to increase the number of channels supported while expanding coverage area." Moreover, "Mgmt expects small cell deployment to be similar to that of Wi-Fi APs and estimates each small cell to cost $1k (vs. macro $20k) with $100 of content ($2k)."

    Primary customers for these products are likely to be service providers, and. key products include "cable, xDSL, satellite, IPSTB, media servers, residential modems / gateways, small cells." Finally, the authors note, as" data centers evolve to handle more bandwidth, higher scalability, and greater efficiency…[t]his expands their TAM in embedded processors ($3bn market) and increases the addressable content in small cells (digital front-end)."

    Stocks: AVGO
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