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Technology Stocks : Broadcom (BRCM)

BRCM 54.67

0.0%

Feb 9 4:00 PM EST

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To: SteveG who wrote (1545)	5/9/1999 10:47:00 AM
From: Patriarch	Read Replies (1) of 6531

MSN's Jubak on BRCM: Way back in February, when Broadcom (BRCM) traded at $61 a share, I set an $85 target price for February 2000. So here we are in May and this highly volatile stock has already punched through that number. I based my target price on my projections for revenue growth to $400 million in 1999 and $650 million in 2000. Those estimates now seem low. The company has been able to enter new markets and grow revenue from new products more quickly than I expected. On April 20, Broadcom reported first quarter 1999 revenue of $96.3 million, up 173% from the same period of 1998. Sequential revenue growth -- that's growth from the fourth quarter of 1998 -- came to 37%. So I'm now projecting revenue of $613 million for all of 1999 and almost $1 billion for 2000. Using a slightly lower multiple of 12 times revenue (instead of 13) to take into account the increasing competition in this market, I calculate a target price of $118 a share for April 2000. That's a 39% potential gain in a year from the current price of $85. Broadcom remains a Jubak's Pick. moneycentral.msn.com

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