Kaufman Bros. Cuts Price Target & Estimates on Avago Tech. (AVGO), Weak Macro Trends

Kaufman Bros. is reaffirming its Buy rating on shares of Avago Technologies (NASDAQ: AVGO), but is lowering its price target from $40 to $37 ahead of its July quarter results.

The company is expected to release its third quarter results following the opening bell on August 23, tomorrow.

The firm lowered its third quarter revenue and EPS estimates on the company from $599 million and $0.66 to $593 million and $0.63 given weak macro trends and softness in the company's Industrial Analog business.

Kaufman Bros believes that the trends will follow the industry into the October quarter and as a result cut its fourth quarter estimates from $643 million and $0.73 to $612 million and $0.64.

To go inline with current market trends, the firm lowered its fiscal 2011 and fiscal 2012 EPS estimates from $2.69 and $2.82 to $2.49 and $2.70. It also lowered its revenue estimates from $2.352 billion and $2.682 billion to $2.315 billion and $2.59 billion.

For more ratings news on Avago Technologies click here and for the rating history of Avago Technologies click here.

Shares of Avago Technologies closed at $28.29 yesterday.

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