NEW YORK (TheStreet) -- Shares of Broadcom Corp (BRCM) are rising 1.8% to $41.89 in afternoon trading Thursday, hitting a new 52-week high following the chip maker's upgrade to "buy" from "neutral" by analysts at Goldman Sachs this morning.
Analysts at the firm said the company's profits are likely to surpass expectations in the second half of 2015 and in 2016, with the help of product trends, and raised its price target to $48 from $40.
Goldman Sachs also cited Broadcom's data center upgrades, bandwidth expansion for new TVs and digital content, as well as the growth in the number of connected devices.
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The firm expects Broadcom's gross margins to expand as higher margin infrastructure products make up a greater proportion of its products.
Separately, TheStreet Ratings team rates BROADCOM CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BROADCOM CORP (BRCM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."