Broadcom's stock could shoot up as much as 40% as the chip-maker grabs part of the "smartphone" market, a Reuters report said.

The Reuters report quoted Cowen & Co analyst Daniel Berenbaum saying that Broadbcom "is in the right markets with the right products."

"You have to like that and you have to like a company that has executed so well," the analyst said.

Berenbaum, who rates the shares "outperform," expects 10% revenue growth in 2009 and 15% in 2010 and sees free cash flow reaching $1 billion or more by 2010, leading to investors likely willing to pay 25 times free cash flow per share, putting the stock at $37.75, or about 40% higher than current levels, the report said.

Source:telecomasia.net