Broadcom (AVGO) Upgraded to “Buy” by Zacks Investment Research

Broadcom (NASDAQ:AVGO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The brokerage currently has a $264.00 price target on the semiconductor manufacturer’s stock. Zacks Investment Research‘s target price suggests a potential upside of 8.02% from the stock’s previous close.

According to Zacks, “Broadcom is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Broadcom has recently inked financing agreements with various institutions to fund Qualcomm’s proposed takeover. If completed, then this deal will make it the third-largest chipmaker, behind Intel and Samsung. The company also has strong ties with leading OEMs across multiple target markets that will help it to gain key insights into the requirements of customers. Moreover, the upcoming launch of the next generation WiFi products is expected to be a growth driver for the segment. However, customer concentration, intensifying competition, integration risks due to frequent acquisitions and leverage balance sheet are key headwinds.”

Other equities research analysts also recently issued research reports about the company. KeyCorp reaffirmed a “buy” rating and set a $290.00 target price on shares of Broadcom in a report on Tuesday, October 17th. Mizuho reaffirmed a “buy” rating and set a $290.00 target price on shares of Broadcom in a report on Monday, November 6th. Drexel Hamilton reaffirmed a “buy” rating and set a $302.00 target price on shares of Broadcom in a report on Monday, November 6th. Oppenheimer reaffirmed a “buy” rating and set a $275.00 target price on shares of Broadcom in a report on Monday, November 6th. Finally, Nomura reaffirmed a “buy” rating and set a $300.00 target price (up previously from $273.63) on shares of Broadcom in a report on Monday, November 6th. One investment analyst has rated the stock with a sell rating, two have given a hold rating, thirty-four have issued a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $301.58.

Shares of Broadcom (AVGO) opened at $244.40 on Tuesday. The company has a current ratio of 6.26, a quick ratio of 5.68 and a debt-to-equity ratio of 0.75. Broadcom has a twelve month low of $202.61 and a twelve month high of $285.68. The company has a market capitalization of $96,508.47, a PE ratio of 57.37, a P/E/G ratio of 0.98 and a beta of 0.88.

Broadcom (NASDAQ:AVGO) last released its earnings results on Wednesday, December 6th. The semiconductor manufacturer reported $4.59 EPS for the quarter, topping the Zacks’ consensus estimate of $4.52 by $0.07. Broadcom had a return on equity of 28.64% and a net margin of 10.18%. The firm had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.84 billion. During the same quarter in the previous year, the company posted $3.47 earnings per share. The company’s revenue was up 17.1% compared to the same quarter last year. analysts expect that Broadcom will post 17.41 EPS for the current fiscal year.

In other news, insider Hock E. Tan sold 20,789 shares of the business’s stock in a transaction that occurred on Monday, December 18th. The stock was sold at an average price of $259.85, for a total value of $5,402,021.65. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Thomas H. Krause sold 656 shares of the business’s stock in a transaction that occurred on Monday, December 18th. The shares were sold at an average price of $264.38, for a total value of $173,433.28. The disclosure for this sale can be found here. Insiders sold 86,674 shares of company stock valued at $22,659,390 over the last 90 days. Company insiders own 3.60% of the company’s stock.

Several institutional investors have recently bought and sold shares of AVGO. Numeric Investors LLC purchased a new stake in shares of Broadcom in the second quarter valued at approximately $207,000. Gotham Asset Management LLC purchased a new stake in shares of Broadcom in the second quarter valued at approximately $854,000. Cetera Investment Advisers purchased a new stake in shares of Broadcom in the second quarter valued at approximately $228,000. Achmea Investment Management B.V. increased its position in shares of Broadcom by 19.2% in the second quarter. Achmea Investment Management B.V. now owns 14,964 shares of the semiconductor manufacturer’s stock valued at $3,485,000 after buying an additional 2,412 shares in the last quarter. Finally, Intl Fcstone Inc. acquired a new stake in shares of Broadcom in the second quarter worth approximately $1,104,000. Institutional investors and hedge funds own 88.46% of the company’s stock.

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About Broadcom

Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

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