Broadcom Corporation (NASDAQ:BRCM) is one of the stocks in the tech space that generally doesn’t get the kind of visibility that its peer group receives. The company over the years has kept the growth momentum going for itself, but Broadcom Corporation (NASDAQ:BRCM)’s shares have not seen the same growth. In January 2006, Broadcom Corporation (NASDAQ:BRCM)’s shares used to trade at the same level that they do now.
So, will Broadcom Corporation (NASDAQ:BRCM) see an upside in the near future? FBN’s Charles Payne thinks so as he discussed the outlook of the company with, Jim Frischling, president of NewOak Capital; Matt McCall, founder of Penn Financial Group; Joanie Courtney, senior V.P of Monster Worldwide, and retail analyst Hitha Prabhakar on Fox Business.
“Now recently they [Broadcom Corporation (NASDAQ:BRCM)] made a decision to sell cellular baseband business, I think that was fantastic. Now, it’s really more of a pure play on wireless infrastructure and connectivity. Its chips are going to be focused on applications, Bluetooth, cable and better processing, consumer electronics, also the Ethernet. Customers, Amazon, Apple, Cisco, Dell, you name it,” Payne said.
Frischling agreed with Payne saying that it’s good that Broadcom Corporation (NASDAQ:BRCM) is getting rid of a business which was very competitive and in which Broadcom Corporation (NASDAQ:BRCM) wasn’t a dominant player. Frischling also feels that Broadcom Corporation (NASDAQ:BRCM) is doing great by focusing on set-up boxes and the company is always at the cutting edge in innovation in the mobility space, which makes him bullish on Broadcom Corporation (NASDAQ:BRCM).
“I wouldn’t buy it here, I like everything that you [Charles Payne] said, everything that Jim said as well. The valuations are fantastic, but it has hit its head against $39 levels about five times since 2012, so, buying here you are kind of capped. I want to see a close above $39 for a couple of days, if that it runs right to $47,” McCall added.