Broadcom Ltd. (AVGO): Raising PT Ahead Of Earnings - RBC
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RBC Capital analyst, Amit Daryanani, reiteragted Broadcom Limited (NASDAQ: AVGO) as his Top Pick ahead of earnings on 9/1. The analyst believes AVGO will show Revenue upside as well as EPS upside due to:
1) Better AAPL trends given implied sell through at AAPL was ~44M units (sell-in was 40M) and implied Sept-qtr q/q guide was better than recent trends/expectations
2) HDD Inflecting: Aggregate HDD TAM was better in June-qtr and notably higher in Sept-qtr driven by strong hyperscale and gaming demand (8TB/10TB Hyperscale ramp should help AVGO)
3) Enterprise: We expect strong server/hardware data from IBM being an incr. positive for ELX (AVGO’s core FC HBA)
4) Wired: Expect stable to improving underlying trends coupled with alleviating production bottleneck being a positive.
Beyond the July-qtr, the analyst believes AVGO will sustain $16.00+ EPS by FY19 leading the stock to a price over $200. Therefore, he raises his price target to $190 from $185.
Shares of Broadcom Limited closed at $177.16 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change
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