Barclays Maintains an 'Overweight' on Avago Technologies (AVGO); Qtr Preview: Apple Strength A Tailwind

Barclays maintains an 'Overweight' on Avago Technologies (NASDAQ: AVGO) price target of $41.00.

Analsyts, Blayne Curtis/C.J. Muse, said, "We are looking for January results at the high-end of guidance on Apple (Nasdaq: AAPL) strength yet see guidance only inline as wireless customers (ex Apple) continue to correct. Strong iPhone 4S builds likely add ~$20M of upside to our January and April estimates but we see continued inventory corrections in mobile and infrastructure into April. We believe this will be enough for the stock and longer-term continue to favor AVGO as we are incrementally more confident that AVGO's content in IP5/iPad3 is flat to up and like its LTE exposure (Verizon (NYSE: VZ), AT&T (NYSE: T)) and relative valuation (12x vs. peers 15-20x)."

Barclays maintains FY12/13 EPS at $2.59/$2.86, respectively.

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 $35.24 yesterday.

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