Morgan Stanley Reaffirms Positive Rating for Avago Technologies (AVGO)
The analysts wrote, “We remain Overweight AVGO as the company’s above-average growth, strong FCF, diversified revenue stream (after LSI), and consistently high profitability is not reflected in the current multiple (P/E of 13x pro-forma 2015 EPS for the combined company). We have high conviction in management’s ability to execute on driving LSI’s OMs from 17% to 30% over the next few years. Notably, Avago doubled its OMs from 15% to 30% post the company’s LBO and is very effective at maximizing pricing for its IP, which we think will benefit the LSI business.”
Avago Technologies (NASDAQ:AVGO) traded up 8.30% during mid-day trading on Friday, hitting $82.70. The stock had a trading volume of 3,324,693 shares. Avago Technologies has a one year low of $38.04 and a one year high of $77.21. The stock has a 50-day moving average of $73.06 and a 200-day moving average of $67.58. The company has a market cap of $20.817 billion and a P/E ratio of 32.11.
Avago Technologies (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, August 28th. The company reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.21. The company had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the previous year, the company posted $0.74 earnings per share. The company’s revenue for the quarter was up 99.8% on a year-over-year basis. On average, analysts predict that Avago Technologies will post $4.01 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Pacific Crest raised their price target on shares of Avago Technologies to $90.00 in a research note on Friday. Separately, analysts at Credit Suisse reiterated a “buy” rating on shares of Avago Technologies in a research note on Friday. They now have a $75.00 price target on the stock, down previously from $105.00. Finally, analysts at Oppenheimer raised their price target on shares of Avago Technologies from $85.00 to $100.00 in a research note on Friday. They now have an “outperform” rating on the stock. Four research analysts have rated the stock with a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of “Buy” and a consensus target price of $82.18.
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.
Receive News & Ratings for Avago Technologies Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avago Technologies Ltd and related companies with Analyst Ratings Network's FREE daily email newsletter.