Zacks Reiterates “Outperform” Rating for Avago Technologies (AVGO)
Avago Technologies (NASDAQ:AVGO)‘s stock had its “outperform” rating reiterated by Zacks in a research report issued on Friday. They currently have a $85.00 price target on the stock. Zacks‘s price objective would suggest a potential upside of 20.07% from the company’s current price.
Zacks’ analyst wrote, “We are initiating our coverage on Avago with an Outperform recommendation as we anticipate the stock to perform well above the broader market. Avago reported strong second-quarter fiscal 2014 results with adjusted earnings well exceeding the Zacks Consensus Estimate. Avago is one of the leading players in the analog semiconductor market with a wide array of products and a well-diversified customer base. Avago expects to further strengthen its position through organic growth across the industry verticals and increased market penetration buoyed by the LSI acquisition. In addition to cost synergies from a combined resource pool, the acquisition is likely to improve the operating margin and create greater scale to further drive innovation. However, operating risks regarding high R&D costs for technology-driven products could weigh on the margins moving forward. “
Avago Technologies (NASDAQ:AVGO) traded down 0.94% during mid-day trading on Friday, hitting $70.125. 2,469,496 shares of the company’s stock traded hands. Avago Technologies has a 52-week low of $35.62 and a 52-week high of $71.28. The stock has a 50-day moving average of $65.25 and a 200-day moving average of $57.55. The company has a market cap of $17.519 billion and a P/E ratio of 31.90. Avago Technologies also saw a significant growth in short interest during the month of May. As of May 15th, there was short interest totalling 6,818,510 shares, a growth of 147.1% from the April 30th total of 2,759,952 shares. Currently, 2.7% of the shares of the company are short sold. Based on an average daily volume of 8,536,799 shares, the days-to-cover ratio is currently 0.8 days.
Avago Technologies (NASDAQ:AVGO) last announced its earnings results on Thursday, May 29th. The company reported $0.85 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.76 by $0.09. The company had revenue of $901.00 million for the quarter, compared to the consensus estimate of $679.59 million. During the same quarter last year, the company posted $0.61 earnings per share. Avago Technologies’s revenue was up 24.7% compared to the same quarter last year. On average, analysts predict that Avago Technologies will post $3.74 earnings per share for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Raymond James reiterated an “outperform” rating on shares of Avago Technologies in a research note on Friday. They now have a $83.00 price target on the stock, up previously from $65.00. Separately, analysts at Goldman Sachs raised their price target on shares of Avago Technologies to $78.00 in a research note on Friday. Finally, analysts at Morgan Stanley reiterated an “overweight” rating on shares of Avago Technologies in a research note on Friday. They now have a $78.00 price target on the stock, down previously from $80.00. Five investment analysts have rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $71.80.
Avago Technologies Limited is a designer, developer and global supplier of a range of analog semiconductor devices with a focus on III-V based products.
To view Zacks’ full report, visit Zacks’ official website.
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