B.Riley/FBR Upgrades Broadcom Limited (AVGO) to Buy

B.Riley/FBR analyst Craig Ellis upgraded Broadcom Limited (NASDAQ: AVGO) from Neutral to Buy with a price target of $300.00 (from $250.00).

The analyst offers four reasons for the upgrade:

1. five constructive signs emerged we believe augur well for integration and operations,
2. previously feared late December-to-February smartphone order and sentiment negatives have pulled in due to a weak iPhone cycle, deflating F1Q and FY19 Wireless Comms expectations,
3. updated estimates show $3.02 and $3.55 in FY19&20 CA EPS accretion with FY20 potentially conservative if debt reduction exceeds our model,
4. CA’s potential $2.0B enhancement to long-term FCF could push the dividend 20-30% higher each year from FY19 through FY21, sharply elevating downside stock support as a $1.75 quarterly payout (3.0% yield) rises toward or above $3.00 (a 5.0% yield.

For an analyst ratings summary and ratings history on Broadcom Limited click here. For more ratings news on Broadcom Limited click here.

Shares of Broadcom Limited closed at $237.41 yesterday.

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