Salomon Cuts Broadcom Price Target, Maintains Buy Rating

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Shares of

Broadcom

(BRCM)

tumbled after

Salomon Smith Barney

cut its 12-month price target on the company to $200 from $300, citing flattening orders, inventory concerns in the digital cable sector and increasing risks in semiconductor stocks.

Shares of Broadcom were recently down 13.3%, or $15.63, to $101.50 in

Nasdaq

trading. The 52-week high is $274.75.

However, Salomon maintained a buy rating on Broadcom, indicating that the concerns were largely priced into the stock and that any fundamental problems would be short-lived.