Wednesday, April 29, 2015

Seeking Alpha: Broadcom Still Undervalued, And With Cards To Play

While it has not kept pace with Cavium (NASDAQ:CAVM) or Avago (NASDAQ:AVGO) over the past year, Broadcom (NASDAQ:BRCM) has still made a good showing with nearly 50% increase in the value of its stock price (considerably better than rivals like Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC), and STMicroelectronics (NYSE:STM)). Better still for today's shareholders, the company has not gone as far as it can with its new focus on sustainable growth and lean operations.

The murky outlook for connectivity isn't going to resolve soon, as it's still unclear if growth in IoT applications like wearables and home automation will offset all but inevitable share loss in mobile handsets. On the other hand, Broadcom's opportunities in the networking space may yet be underestimated, particularly if new product introductions can coax more business out of Cisco (NASDAQ:CSCO). With a fair value in the mid-$40's to low-$50's, Broadcom isn't a striking bargain but still offers enough upside to be worth buying and/or holding.

Read more here:
Broadcom Still Undervalued, And With Cards To Play

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