Mizuho Securities Reiterates Buy on Avago Tech (AVGO) Following 3Q EPS Beat
Mizuho Securities reiterated a Buy rating and $175.00 price target on Avago Technologies (NASDAQ: AVGO) following the company's 3Q15 earnings report. AVGO reported revenue of $1.8B, above consensus of $1.7B. EPS of $2.24 beat consensus estimates of $2.13. Management guided OctQ inline with consensus at $1.85B.
Analyst Vijay Rakesh commented, "AVGO reported a solid 3Q15 Rev/EPS at $1.8B/$2.24, above consensus of $1.7B/$2.13 with a 42% operating margin almost 130bps ahead of the street. While AVGO is down 18% in the last three months given concerns over China, datacenter, and telecom, AVGO also guided to an inline OctQ, noting continued growth in all three segments. With post-merger EPS/FCF of ~$13-$15/$5.75B yr by 2017E, plus a dividend, we view AVGO as a core holding. Tweaking our estimates up, and reiterating our Buy rating and $175 PT."
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Shares of Avago Technologies closed at $116.20 yesterday.