Avago Technologies Downgraded by Zacks to “Neutral” (AVGO)
Avago Technologies (NASDAQ:AVGO) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a report released on Thursday. They currently have a $79.00 price objective on the stock. Zacks‘s price objective would indicate a potential upside of 3.47% from the stock’s previous close.
Zacks’ analyst wrote, “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 further expects to 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. We are changing our long-term recommendation on Avago from Outperform to Neutral as we anticipate the stock to perform in line with the broader market. “
Avago Technologies (NASDAQ:AVGO) traded down 0.68% on Thursday, hitting $75.86. The stock had a trading volume of 810,816 shares. Avago Technologies has a 1-year low of $36.08 and a 1-year high of $76.62. The stock’s 50-day moving average is $72.72 and its 200-day moving average is $66.75. The company has a market cap of $19.095 billion and a P/E ratio of 32.12.
Avago Technologies (NASDAQ:AVGO) last issued its quarterly earnings data 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 $3.99 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Morgan Stanley raised their price target on shares of Avago Technologies to $82.00 in a research note on Tuesday. Separately, analysts at Citigroup Inc. reiterated a “buy” rating on shares of Avago Technologies in a research note on Monday, July 14th. They now have a $90.00 price target on the stock, up previously from $46.00. Finally, analysts at Raymond James reiterated an “outperform” rating on shares of Avago Technologies in a research note on Friday, May 30th. They now have a $83.00 price target on the stock, up previously from $65.00. Four equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. Avago Technologies currently has a consensus rating of “Buy” and a consensus target price of $75.58.
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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