NEW YORK (TheStreet) -- Broadcom (BRCM) shares jumped 14.92% to $53.68 in afternoon trading on Wednesday following reports that the company is in advanced talks to be purchased by Avago Technologies (AVGO).
The stock is trading on more than triple its three month daily average volume at 21.3 million shares so far today.
The Irvine,CA-based tablet and smartphone semiconductor manufacturer could be the latest takeover target in a semiconductor industry that has seen an accelerated rate of mergers and acquisitions this year, according to the Wall Street Journal.
Industry giant Intel (INTC) is currently in talks to purchase Altera Corp (ALTR).
Broadcom has a market value of about $28 billion while Avago is currently valued at approximately $34 billion.
Earlier today, analysts at Bank of America/Merrill Lynch reiterated their "outperform" rating on the company's shares with a $54 price target. While citing the company's strong fundamentals and impressive WiFi business, the firm believes that the company could go as high as $68 per share.
For the year the firm provided 2015 EPS guidance of $3.08 cents per share, ahead of analysts' consensus $3 estimates. The firm also forecast better than expected 2016 full year EPS of $3.51, ahead of analysts' $3.21 expectations.
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 a few notable strengths, 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."