J.P. Morgan Reiterates Overweight on Broadcom

J.P. Morgan is out with its report today on Broadcom BRCM, reiterating Overweight. In a note to clients, J.P. Morgan writes, "After weathering a soft 1H, Broadcom is back on solid ground, and we believe that all the elements for outsize growth remain for Broadcom in the form of multiple new product cycles and new platform ramps at customers. Additionally, we believe management has a solid track record of effective cost improvements and disciplined expense controls. Consequently, we believe that as the company continues to drive revenue and earnings growth above consensus expectations, a combination of multiple expansion and higher earnings revisions will drive the stock toward our target price. We reiterate our Overweight rating on BRCM." J.P. Morgan maintains a $50 PT on BRCM. At the time of posting, shares of BRCM were trading pre-market at $37.90, up 8.56% from Monday's close.