J.P. Morgan Lowers Broadcom's Price Target (BRCM)

In a report by J.P. Morgan, Broadcom Corporation's (NASDAQ: BRCM) outlook for its second quarter revenue growth is flat following a seasonal first quarter.

Net revenue for the first quarter of 2011 was $1.82 billion, compared to $1.46 billion in the prior year period. Wall Street Analysts expected revenues of $1.81 billion for the first quarter. J.P. Morgan explains, “BRCM's guidance for roughly flat revenue growth in 2Q is below seasonal and shy of consensus and our expectations for 5% growth. The company cited anticipated softness at some of its key mobile/wireless customers for the revenue shortfall, which is consistent with the sluggish 2Q demand fundamentals at Samsung and Nokia.”

J.P. Morgan has decreased Broadcom's price target from $55 to $50 and has an Overweight rating.

At closing yesterday, Broadcom was trading at $40.41.