Avago Technologies (AVGO) PT Lifted to $75 at Nomura Securities

Nomura Securities analyst Romit Shah boosted his price target on Buy-rated Avago Technologies (NASDAQ: AVGO) to $75.00 (from $70.00) following the completion of the LSI deal.

Shah comments, "Following the completion of the LSI transaction last week, we examine customer mix, two potential divestitures and valuation. We are also publishing earnings forecasts for Avago-LSI. Avago-LSI is one of the best restructuring stories we’ve seen in years. The stock is up 30% year-to-date and 100%-plus over the last 12 months, reflecting merits of the deal to a large extent, in our opinion. We see another 10% upside from here and are raising our price target from $70 to $75. The acquisition of LSI reduces exposure to a maturing smartphone market, which accounted for 50% of sales in 2013. We believe the company is exploring alternatives for a couple product lines that would be incremental to 2015 expense savings ($200m). CY14E EPS at $2.86; CY15E EPS at $3.82."

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 $69.13 yesterday.

You May Also Be Interested In

• Brinker Int'l (EAT) PT Lowered to $240 at DA Davidson Ahead of Analyst Day
• Jazz Pharmaceuticals (JAZZ) PT Raised to $337 at UBS on GEA Approval for Ziihera
• Jersey Mike's Subs (JMKE) PT Raised to $30 at Tigress Financial Partners