New 52-week highs for Broadcom after upgrade, MediaTek speculation


Drexel Hamilton's Richard Whittington has joined the list of analysts praising Broadcom's (BRCM +2%) plans to exit the baseband chip market, upgrading shares to Buy and lifting its PT by $15 to $45.

Whittington has upped his 2014 EPS estimate by $0.18 to $2.58 (above a $2.54 consensus). He also sees Broadcom benefiting from Apple, Google, and Samsung's home/auto connectivity initiatives - the company was one of many partners mentioned by Apple when the company unveiled its HomeKit automation platform on Monday.

Stifel downgraded Broadcom to Hold yesterday; like Wells Fargo, it's worried a baseband exit could lead to combo chip share losses.

Separately, Taiwan's Economic Daily News states MediaTek is "likely" to buy Broadcom's baseband unit, which many think will be shut down rather than sold. It's worth noting MediaTek already has an extensive lineup of 3G basebands, and is getting ready to ramp shipments of a 4G part.

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