Sunday, February 1, 2015

Seeking Alpha: Broadcom Staying On-Script And Still Undervalued

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

No comments: