Brean Capital analyst Mike Burton reiterated a Buy rating and boosted his price target on Avago Technologies (NASDAQ: AVGO) to $180.00 (from $145.00) following the announced takeover of Broadcom, saying the deal should be accretive.

Burton commented, "Avago reported solid quarterly results and guidance before the market opened yesterday and announced its intent to acquire Broadcom (BRCM $56.25, Buy). We like the acquisition strategically for the complimentary product portfolios and customer lists, and financially for the $750M+ in cost synergies and immediate accretion. Combined, Avago and Broadcom should create a powerhouse in communications semiconductors which is poised to deliver above-industry growth with best-of-class profitability and free cash flow. We are introducing our pro-forma estimates for the combined entity and increasing our target price to $180 (from $145)."

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Shares of Avago Technologies closed at $142.38 yesterday.