Barclays upgrades Apple Inc and Broadcom Print
Written by Sam Coventry   
Tuesday, 02 February 2010 11:51

Nasdaq Composite is expected to cement yesterday's gains as some key players are given a firm backing by analysts at Barclays Capital.  



The Nasdaq Composite (INDEXNASDAQ:.IXIC) closed higher by 1.11% at 2,171.20. Nasdaq futures are pointing higher by 0.27% at 11:30 am GMT.

Apple Inc (NASDAQ:AAPL) is higher by +0.32% in pre-market trade after analysts at Barclays issued an analyst upgrade on the stock.

Barclays Capital set a higher price target up to 285 on the stock. Apple Inc ended higher by 1.39% at 194.73 yesterday.

Broadcom Corporation (NASDAQ:BRCM) was another recipient of a favourable overview from the Barclays analysts.

Broadcom Corp was upgraded by Barclays Capital with a price target up to 35. Yesterday Broadcom ended 2.96% higher at 27.51.

Apple Inc’s A4 chip, unveiled last week as part of its iPad, shows how Chief Executive Officer Steve Jobs is extending control over the company’s hardware at the expense of Qualcomm Inc. and Intel Corp.

Analysts say that Apple’s decision to design its own part is a blow to Intel, which is trying to win a foothold in mobile devices with its Atom product, said Jim McGregor, an analyst at research firm In- Stat in Scottsdale, Arizona. Apple will probably use a version of the A4 in future models of the iPhone, he said.

Shares of chip makers advanced yesterday, helped by a report indicating their revenue jumped in December and growing analyst confidence that the companies are in a strong position for the year.

Chip stocks generally fell last month, with investors jittery about the broader economic outlook and fourth-quarter earnings reports. The Philadelphia Semiconductor index was down 12 percent in January.

But in midday trading Monday, the index was up 6.96 points, or about 2 percent. Earlier in the day, the Semiconductor Industry Association said December global chip revenue climbed 29 percent compared with the same month of 2008.

In a note to investors Monday, FBR Capital Markets analyst Craig Berger said he expects several chip companies he covers to beat Wall Street's fourth-quarter estimates. Additionally, he said inventories among customers such as computer makers are still thin, meaning they will have to ramp up orders to keep pace with any improvement in consumer demand.
Last Updated ( Tuesday, 02 February 2010 11:56 )
 
SEO by Artio