Broadcom Nosedives11/12/2000 7:00 PM Eastern
Communications chipmaker Broadcom Corp. was hammered last week, falling 31 percent, or $67.19, between Nov. 7 and Nov. 8. Its stock fell to $151.81 following an analyst downgrade amid an overall tech sell-off. W.R. Hambrecht & Co. analyst Jim Liang downgraded Broadcom from "strong buy" to "buy" and trimmed his 12-month price target from $295 to $250, citing concerns over softening chip demand. Liang's downgrade came soon after industry leader Cisco Systems Inc. said it would make moves to reduce inventory. "We note that Broadcom derives about 17 percent of its revenue from Cisco, and we believe it is unlikely that Broadcom could go unscathed in the event of an inventory correction from Cisco," Liang wrote. Liang continues to like Broadcom long-term, he added.