Nomura Securities Maintains a 'Buy' on Avago Technologies (AVGO); Expecting Solid Q1
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Price: $38.75 +1.73%
Rating Summary:
15 Buy, 3 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
15 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
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Nomura Securities maintains a 'Buy' on Avago Technologies (NASDAQ: AVGO) price target of $40.00.
Analyst, Romit Shah, said, "Avago will report FQ1 results after the market closes on Wednesday, February 22. Our estimates of $0.60 in FQ2 (Apr) and $2.76 in calendar 12 (Oct) are above consensus of $0.58 and $2.59, respectively. The Street’s estimate of 6% revenue growth this year under-estimates growth in wireless and a cyclical recovery in industrial in the back half, in our view. We expect Avago to report January sales at the high end (down 10-14%) and guide April sales up 5% QoQ. That’s about 3 points above normal seasonality. We believe Avago is undervalued at 11x CY13 versus Analog Devices (NYSE: ADI), Linear Tech (Nasdaq: LLTC), Maxim Integrated (Nasdaq: MXIM), and Texas Instruments (NYSE: TXN) at 14x. The stock also traded at a 35% premium to semis last year, but today trades at a 5% premium on EV/sales."
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 $35.24 yesterday, with a 52 week range of $26.42-$39.45.
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Analyst, Romit Shah, said, "Avago will report FQ1 results after the market closes on Wednesday, February 22. Our estimates of $0.60 in FQ2 (Apr) and $2.76 in calendar 12 (Oct) are above consensus of $0.58 and $2.59, respectively. The Street’s estimate of 6% revenue growth this year under-estimates growth in wireless and a cyclical recovery in industrial in the back half, in our view. We expect Avago to report January sales at the high end (down 10-14%) and guide April sales up 5% QoQ. That’s about 3 points above normal seasonality. We believe Avago is undervalued at 11x CY13 versus Analog Devices (NYSE: ADI), Linear Tech (Nasdaq: LLTC), Maxim Integrated (Nasdaq: MXIM), and Texas Instruments (NYSE: TXN) at 14x. The stock also traded at a 35% premium to semis last year, but today trades at a 5% premium on EV/sales."
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 $35.24 yesterday, with a 52 week range of $26.42-$39.45.
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