NEW YORK (AP) -- A Susquehanna Financial Group analyst on Tuesday upgraded Broadcom Corp. to "Positive" or "Buy," from "'Neutral," saying that the recent drop in the communications chip maker's stock price makes it an attractive investment.
Chris Caso, who also boosted his price target by $2 to $35, said in a note to clients that he downgraded the stock in May because industry expectations for cellular phone production were already high, and there wasn't enough good news on the horizon to justify the company's stock price at that time.
But Caso noted the shares have fallen about 25 percent in the months since. In addition, the stock could soon get a boost from the introduction of new iPhones, along with the company's recent acquisition of Renesas Electronics Corp.'s LTE technology, he said.
The company has said it expects the addition of Renesas to speed up its introduction of new products next year.
Caso said the company's analyst meeting, set for December, could provide the first big boost.
In premarket trading, Broadcom shares were unchanged from their Monday close at $26.91. The stock has traded between $23.25 and $37.85 in the past 52 weeks.