Avago Technologies (AVGO) Target Lifted to $70 at UBS
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Price: $1,203.46 -4.41%
Rating Summary:
43 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
43 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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UBS analyst Steven Chin boosted his price target on Buy-rated Avago Technologies (NASDAQ: AVGO) from $60 to $70, saying wireless prospects are still solid.
Chin said, "We expect Avago's FBAR filter products will continue to underpin overall top line growth given increasing penetration rates for 4G LTE devices and traction in low-cost smartphones. Given the diversity of FBAR attach rates and ASPs per OEM, we are introducing our detailed FBAR Filter forecast model for Avago. While Apple and Samsung combined are expected to be 60-65% of F14 sales, we expect Tier 2 and white label OEMs will drive incremental filter shipments also."
The firm raised F14/15E revenue 1% to $2.9bn/$3.2bn. Given the higher FBAR filter shipments and margin profile for discrete RF filters, they raise gross margins for F14/15/16 by 40/90/140bps leading to 3%/5%/4% increases in EPS (non-GAAP) to $3.41/$3.87/$4.34.
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 $62.68 yesterday.
Chin said, "We expect Avago's FBAR filter products will continue to underpin overall top line growth given increasing penetration rates for 4G LTE devices and traction in low-cost smartphones. Given the diversity of FBAR attach rates and ASPs per OEM, we are introducing our detailed FBAR Filter forecast model for Avago. While Apple and Samsung combined are expected to be 60-65% of F14 sales, we expect Tier 2 and white label OEMs will drive incremental filter shipments also."
The firm raised F14/15E revenue 1% to $2.9bn/$3.2bn. Given the higher FBAR filter shipments and margin profile for discrete RF filters, they raise gross margins for F14/15/16 by 40/90/140bps leading to 3%/5%/4% increases in EPS (non-GAAP) to $3.41/$3.87/$4.34.
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 $62.68 yesterday.
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