Benchmark downgrades Broadcom to Hold

|About: Broadcom Limited (AVGO)|By:, SA News Editor

Benchmark's Gary Mobley has cut Broadcom (BRCM -0.5%) to Hold, albeit while keeping his $40 PT.

Like others on the Street, Mobley is worried about low-end/mid-range combo chip share loss as Broadcom exits the baseband market - as it is, Qualcomm's Atheros unit has been pressuring Broadcom in this space. Nonetheless, he sees the baseband exit providing a $0.40 2015 EPS boost.

The downgrade comes a day after Broadcom made new 52-week highs.