Broadcom/Avago Deal Sees as Negative for Cadence Design (CDNS), Positive for Cavium (CAVM) and Inphi (IPHI), Piper Jaffray Says
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Piper Jaffray analsyt Ruben Roy retained a Neutral rating and bumped his price target on Broadcom (NASDAQ: BRCM) to $60.00 (from $50.00) following the acquisition by Avago, which he said makes strategic sense.
Commenting on the potential impact on other covered companies, Roy notes investors may be expecting some impact to EDA companies such as Cadence Design Systems (NASDAQ: CDNS). "We believe, however, that BRCM's focus on SoCs vs. a focus on proprietary technologies, much of which are analog/RF in nature at AVGO, shouldn't have meaningful impact on the EDA companies like CDNS," he said.
Further they believe that any customer disruption in the enterprise, data center and infrastructure markets from the merger could be a modest positive for Cavium (NASDAQ: CAVM) and Inphi Corp. (NYSE: IPHI).
For an analyst ratings summary and ratings history on Broadcom click here. For more ratings news on Broadcom click here.
Shares of Broadcom closed at $56.25 yesterday.
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