Broadcom Limited (AVGO) PT Raised to $490 at Mizuho Securities

Mizuho Securities analyst Vijay Rakesh raised the price target on Broadcom Limited (NASDAQ: AVGO) to $490.00 (from $480.00) while maintaining a Buy rating.

The analyst commented, "AVGO reported a good JanQ and guided to AprQ with upside at $6.5B (consensus $6.3B). AVGO noted JanQ strength from cloud & telco spend, and AprQ sustaining strength offset by weaker seasonal Wireless. AVGO noted continued supply/demand imbalance, with ~90% of 2021 capacity already booked, and bookings in the JanQ were up 80% y/y with networking/broadband strength. With GMs/OM at ~73%/57% and FCF/year $12B+, we believe Software M&A will be a key focus; AVGO also noted considering buybacks and debt repayment. We reiterate our Buy, raise estimates, and raise PT to $490 (prior $480). We see AVGO well positioned long-term, trading at an attractive ~15.7x F22E (Oct) P/E."

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