Goldman Sachs Upgrades Avago Technologies (AVGO) to Conviction Buy

October 18, 2013 1:00 PM EDT
Get Alerts AVGO Hot Sheet
Price: $191.12 +3.00%

Rating Summary:
    38 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Goldman Sachs upgraded Avago Technologies (NASDAQ: AVGO) from Buy to Conviction Buy with a price target of $54.00 (from $48.00). Analyst James Schneider made note the "LTE story."

"Near term, we expect a strong October quarter based on Apple's product refresh. Apple's new iPhones are compatible with a greater number of frequency bands (8 - 13 bands for LTE in the 5s vs. 3 - 5 bands in the 5), and teardowns suggest Avago has gained content for a third consecutive year," said Schneider.

"In the medium term, we expect OEMs to preview 2014 smartphone models at trade shows in Jan/Feb, with a greater proportion of designs likely to be LTE-enabled, especially at Samsung (now a 10% customer for Avago). We recognize that concerns exist around increased competition in filters; we believe Avago can maintain its leadership position in the medium term but we will be closely monitoring Murata’s and Taiyo Yuden’s progress. We expect solid growth in networking on the heels of the 40G upgrade cycle, and a continued cyclical recovery in the high-margin industrial business," he added.

For an analyst ratings summary and ratings history on Avago Technologies click here. For more ratings news on Avago Technologies click here.

Shares of Avago Technologies closed at $45.10 yesterday.

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