Avago Technologies (AVGO) PT Raised to $95 at Nomura Securities

Nomura Securities analyst Romit Shah reiterated a Buy rating and boosted his price target on Avago Technologies (NASDAQ: AVGO) to $95.00 (from $85.00).

Shah commented, "While shares of Avago Tech have been strong (+104% yoy vs SOX +31%), we believe it is too early to take profits because comps mostly lack catalysts and there is room for additional margin expansion. Our price target increases to $95 based on a multiple of 15x CY15E. The relationship between margin and valuation is extremely strong in semis and semi cap. Operating margin improved from 32% in the Jan period to 36% in the Oct period. In addition, we expect revenue growth driven by Wireless. A combination of strong operational execution, lower capex and revenue growth is likely to strengthen the balance sheet. Our $95 price target is based on a multiple of 15x our fully expensed CY15E EPS of $6.15."

The firm raised CY14E EPS from $4.76 to $4.80; CY15E EPS from $5.70 to $6.15.

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 $87.11 yesterday.

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