Broadcom (NASDAQ:BRCM)
is certainly better loved by the Street now that it put its
money-losing baseband efforts in the past, publicly declaimed "growth
for growth's sake" M&A, and refocused on sustainable profitability.
Now the question is whether management can strike that tricky balance
between profit margins and revenue growth that it will take to maintain
investor enthusiasm.
I continue to like the company's prospects in
this regard. I don't expect the connectivity business to fall off as
fast as feared, and I think the company's offerings in PON, DSL, and
set-top boxes have more to offer than some seem to believe. Network
virtualization should contribute to good growth prospects in the
infrastructure business and opportunities like Internet-of-Things (or
IOT), wireless charging, and auto networking should offer some upside.
Read the full article here:
Broadcom Staying On-Script And Still Undervalued
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