Nomura Trims Numbers on Avago (AVGO) Post Q4, But Sees Upside to New PT

November 30, 2012 8:17 AM EST
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Nomura Securities trimmed estimates and its price target on Avago Technologies (NASDAQ: AVGO) from $42 to $40 following Q4 results. The firm maintained a Buy rating.

"Avago reported better F4Q revenue/EPS of $618mn/$0.71 than our estimates of $615mn/$0.67. Higher EPS was largely driven by lower opex (-$7mn)," analyst , Romit Shah notes. "Industrial guidance of low to mid single digits decline is roughly in line with our prior forecast. Wired comm results came inline (down 8% q/q) with our forecast; however, the guidance of sequential decline of high-single to low-double digits is disappointing."

The firm lowers F1Q estimates from $615/$0.67 to $575/$0.54 and CY13 estimates from $2.7bn/$3.00 to $2.5bn/$2.70. The new $40 price target is based on 15x CY13E EPS. AVGO trades at 13x forward earnings multiple vs. an average of 15x for the coverage group.

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 $35.10 yesterday.

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