2/8/2010-Citigroup Equity Research initiated Broadcom Corporation (NASDAQ:BRCM) with a Buy rating and $35 target price early Monday, saying they view the company as a "classic growth story whose prospects are amplified by our view of an improving economic cycle."

Citi analyst Glen Yeung said, "Specifically, we anticipate momentum to build in Broadcom's mobile & wireless business, as they gain share at top handset vendors Nokia and Samsung, even as handset units are improving with the economy. The company's focus on 3G solutions and smartphone applications positions them well for significant growth, in our view. We see substantial leverage to share gain within its primary customers and less so to industry growth in 2010. When adding likely cyclical improvement in enterprise networking and consumer broadband, we model above chip industry growth for Broadcom, warranting the classification as a "growth" story."

Citigroup concluded by saying they expect upside to consensus and also expect consistent beat and raise results in 2010, currently modeling GAAP EPS of $1.25/$1.50 for 2010/2011.

Contact Chip Brian

SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at www.TradeTheTrend.com/signup.html