Broadcom: Roth Turns Bullish

Roth Capital analyst Arnab Chanda this morning lifted his rating on Broadcom (BRCM) to Buy from Hold, setting a price target of $34. (The stock closed Friday at $28.46.)

“We believe that BRCM is poised to outperform the semi market with multiple product cycles in combo wireless, baseband and digital TV, as well as recovery in enterprise,” he wrote in a research note.

Chanda lifted his 2009 EPS estimate to 93 cents from 90 cents; for 2010 he now sees $1.20, up from $1.06.

Meanwhile, Broadcom this morning announced that its IPTV set-top box system-on-a-chip has “has completed Microsoft Mediaroom client integration,” which means IPTV service providers can now use set-top boxes based on Broadcom chips. (Not good news for Sigma Designs (SIGM), which has long dominated that market.)

In a note this morning, Brigantine Advisors semi analyst Allan Mishan noted that the news “could be a significant new driver” for Broadcom’s set-top box business. Companies that use Microsoft Mediaroom include AT&T (T) and British Telecom (BT), among many others.

BRCM today is up 77 cents, or 2.7%, to $29.23. Sigma, meanwhile, is down 19 cents, or 1.3%, to $14.66.