Shares of Irvine-based Broadcom Corp. opened higher after an analyst said it’s a good time to buy the stock as the chipmaker makes gains in smartphones and other areas.
Goldman Sachs Group Inc. analyst James Schneider added Broadcom’s shares to the investment bank’s conviction buy list, which is a listing of stocks Goldman’s research team expects to outperform the general market.
James Schneider set a $44 price target on the stock, which was up about 3% in midday New York trading to $37 on a market value of $18 billion.
Broadcom is landing more chips in smartphones and also could see growth in tablet computers, the analyst said.
“We see an attractive entry point for a stock with multiple growth drivers,” Schneider was quoted as saying on a Barron’s blog.
Broadcom is set to report third-quarter results on Oct. 26.
Analysts on average expect the company to report a profit of $357 million, up 77% from a year earlier.
Sales are seen coming in at $1.75 billion, up nearly 40% from a year earlier.
