Broadcom: Oppenheimer Sees Decelerating Growth

Broadcom (BRCM) shares are trading lower this morning after Oppenheimer’s Allan Mishan cut his rating on the stock to Perform from Outperform. “Though we believe the company is well positioned for long-term growth and continued share gains,” he wrote in a research note, “we see a deceleration beginning in Q4 that could affect BRCM’s multiple for several quarters.”

Mishan says broadband and enterprise component sales “have likely been running ahead of consumption,” and adds that he is “concerned that a return to trendline will hurt Broadcom’s future revenues.” He also says that “the lack of operating leverage should remain a lingering issue for the next few quarters.”

BRCM today is off 78 cents, or 3%, to $25.39.