Management Shift Pounds Broadcom - Multichannel

Management Shift Pounds Broadcom

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Broadcom Corp. shares plunged in early trading last Thursday, after Morgan Stanley lowered its rating on the broadband communications chipmaker from "overweight" to "equal weight," citing recent management changes. Broadcom dipped to $13.56 in opening minutes Thursday, down 12 percent ($1.84) from $15.40 on March 26. Late Wednesday, Broadcom said it would replace the head of its server division, the "second major and unexpected management change in 2003," according to a report by Morgan Stanley tech analyst Mark Edelstone. Edelstone also cut his 12-month price target on the stock to $21 from $30, "to reflect the higher level of uncertainty in our longer-term estimates."

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