Jefferies maintains a 'Buy' on Avago Technologies (AVGO); Downward Revision Out of the Way

Jefferies maintains a 'Buy' on Avago Technologies (NASDAQ: AVGO) price target lowered from $45 to $41.

Jefferies analyst says, "We're buyers of AVGO on the lowered expectations. At 10.2x our FY13 EPS, the valuation is compelling for a stock that has good visibility into growth based on product cycles in secular growth areas like Smartphones (Apple (Nasdaq: AAPL), Samsung, Motorola (NYSE: MSI)), and Data Centers (Cisco (Nasdaq: CSCO), Juniper (Nasdaq: JNPR), HP (NYSE: HPQ)). We also think AVGO's sell-in revenue recognition means upside surprises during an inventory restock, which we expect in 1H12."

Jefferies raises FY11 EPS estimate $2.67 to $2.70, lowers FY12 from $2.64 $2.60, and raises FY13 from $2.87 to $2.92.

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 $29.91 yesterday.

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