Avago Technologies Receives “Overweight” Rating from Morgan Stanley (AVGO)
Avago Technologies (NASDAQ:AVGO)‘s stock had its “overweight” rating reiterated by equities research analysts at Morgan Stanley in a research note issued to investors on Tuesday, Stock Ratings Network.com reports. They currently have a $68.00 target price on the stock, up from their previous target price of $51.00. Morgan Stanley’s price target would indicate a potential upside of 23.03% from the stock’s previous close.
The analysts wrote, “high” growth to “above-average” growth with a meaningful margin kicker. “Since initiating on AVGO in July, we have positioned the stock as an attractive growth story,” the report noted. “The combination with LSI likely drives growth down a notch to 6-8% from low double digits, but still above most semis at 5-6%. On the other hand, we see substantial margin expansion and EPS accretion of ~$1.50. Net, net Avago’s stripes are changing, but we remain Overweight and expect the stock to outperform. Please see pages 9-12 for detailed analysis of LSI’s business.”
Avago Technologies (NASDAQ:AVGO) traded up 5.00% during mid-day trading on Tuesday, hitting $55.27. 3,485,514 shares of the company’s stock traded hands. Avago Technologies has a 52 week low of $30.57 and a 52 week high of $55.84. The stock’s 50-day moving average is $49.97 and its 200-day moving average is $42.92. The company has a market cap of $13.757 billion and a P/E ratio of 24.04.
Avago Technologies (NASDAQ:AVGO) last announced its earnings results on Wednesday, December 4th. The company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.07. The company had revenue of $733.90 million for the quarter, compared to the consensus estimate of $731.24 million. During the same quarter in the previous year, the company posted $0.71 earnings per share. The company’s revenue for the quarter was up 19.4% on a year-over-year basis. Analysts expect that Avago Technologies will post $3.38 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Jefferies Group reiterated a “hold” rating on shares of Avago Technologies in a research note to investors on Tuesday, December 17th. Separately, analysts at UBS AG raised their price target on shares of Avago Technologies from $44.00 to $60.00 in a research note to investors on Tuesday, December 17th. They now have a “buy” rating on the stock. Finally, analysts at Canaccord Genuity raised their price target on shares of Avago Technologies from $54.00 to $65.00 in a research note to investors on Tuesday, December 17th. They now have a “buy” rating on the stock. Three equities research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $54.44.
Avago Technologies Limited (NASDAQ:AVGO) is a designer, developer and global supplier of a range of analog semiconductor devices with a focus on III-V based products.
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