UPDATE: Benchmark Downgrades Broadcom

In a note dated June 17, Benchmark analyst Gary Mobley downgraded Broadcom (NASDAQ: BRCM) from Buy to Hold and maintained a $40 price target.

Mobley began the note by referencing Broadcom's June 2 announcement to divest its cellular baseband business. He continued by stating that, while the firm is still publishing its respective 2014 and 2015 non-GAAP EPS estimates of $2.65 and $2.75, he anticipates a ~$0.40 accretion from the divestiture in fiscal 2015.

In a look at the company's current price, Mobley says Broadcom might be trading at a multiple discount (12-13 vs. 13-15 of competitors) due to worries related to growth. He says the concern is coming from lost market share in low to mid-range combo connectivity chip sales as the company exits the baseband market.

Following the release of the note shares of Broadcom are trading ~1 percent lower in Tuesday's pre-market session.