Analysts Bump Up Broadcom Price Targets Following Q1 Earnings

Broadcom Inc (NASDAQ: AVGO) shares are seeing a joyful arise following the liberate of its fiscal first-quarter results.

The Analysts

• UBS Securities analyst Timothy Arcuri maintained a buy rating though Broadcom and raised the pay target from $275 to $300.
• Raymond James analyst Chris Caso reiterated a just do rating.
• Mizuho Securities analyst Vijay Rakesh reiterated a buy rating and raised the pay target from $295 to $305.
• Wells Fargo Securities analyst Aaron Rakers maintained a just do rating besides raised the pay target from $265 to $290.
• MKM Partners analyst Ruben Roy maintained a buy rating and hiked the pay target from $280 to $310.

Broadcom shares were rallying 8.3 percent to $290.52 Friday afternoon.

UBS: Broadcom One Of Our peak Ideas

Broadcom delivered healthful quarterly results and maintained guidance, belying expectations though a abbreviate to the full-year guidance, Arcuri said at a note.

Notwithstanding the skepticism nearly a semiconductor ramp into July-October, the analyst sees a company-specific novel that cann't exist doubted, given key manufacture cycles at networking and large forthcoming content gains though iPhone.

UBS attributed its bullish anticipate to Broadcom's slightly higher estimates, due primarily to the improve trajectory from CA acquisition, and said the stock remained one of the firm's peak ideas.

See Also: Broadcom Is Baird's New peak Large-Cap Semi Pick

Raymond James: "We Are no Comfortable Modelling A Second-Half Rebound"

The mixed first-quarter revenue reflected below-par semiconductor revenues besides more-than-expected software revenues, Caso said. The guidance implied a slowdown at software besides healthful second-half semiconductor revenues.

View more wage above AVGO

"Particularly given the company's reduced disclosure, which makes the affair tougher to analyze, we're no comfortable at modeling that healthful 2H rebound, which correspondingly makes it difficult to propose the stock," Caso wrote at a note.

Mizuho: CA Acquisition Running Ahead of Expectations

Broadcom suggested the CA integration is above track, with healthful renewal rates growing double digits from the 500 middle customers, Rakesh said. This was a large contributor to the healthful 71 percent full margins.

"[W]e consider CA could exist running ahead of initial ~$3B F19E topline expectations," Rakesh wrote. though such, the corporation raised its EPS estimates though the next quarter.

Wells Fargo: We Are Positively Biased Toward Broadcom

Increased belief at Broadcom's execution above CA integration, across with some meaningful manufacture cycle considerations into second-half of 2019 made Wells Fargo certain toward Broadcom, Rakers said. The analyst essentially left his 2019, 2020, 2021 revenue and EPS estimates unchanged.

MKM Is certain above Broadcom Shares

Broadcom's results badge a healthful commence to fiscal-year 2019, Roy said. The semiconductor portion held up relatively well, despite continued headwinds at the wireless portion and some underperformance from the storage segment, the analyst said, citing the company.

Infrastructure software revenue, accounting though 24 percent of the revenues, came at can $1.4 billion, helped by the outperformance of SAN switching, Roy said. The analyst expects revenues at this portion to exist sustained across fiscal-year 2019.

"We summary to progposal AVGO shares though attractively valued with hard growth prospects and continued improvement at border and coin flow metrics," Roy wrote.

Photo credit: Floirian Knodt, Flickr

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