Sterne Agee CRT Sees Headwinds Ahead of Avago Tech (AVGO) Earnings; Reiterates Buy

Sterne Agee CRT reiterated a Buy rating and $160.00 price target on Avago Technologies (NASDAQ: AVGO) ahead of the company's earnings release, scheduled for December 2nd. Analyst Douglas Freedman sees headwinds from slower iPhone demands and enterprise storage softness. Also, as of yesterday, AVGO's proposed acquisition of BRCM ($54.11, NR) has received shareholder approvals from both companies as well as regulatory approvals in the US, Japan, Taiwan and Europe.

Freedman commented, "While we see headwinds from slower iPhone demands and enterprise storage softness as we head into AVGO OctQ earnings call on Dec2, we believe downside is limited at current level given earlier seasonal ramp at Samsung and the ongoing recovery we have seen in wireless infrastructure. As such, our model remains unchanged as it has already reflected some conservatism. In addition, we expect to get further updates from management regarding the acquisition of BRCM, which could have a significant impact on the business outlook and target operating model."

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 $128.34 yesterday.

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