UPDATE: Broadcom Limited (AVGO) PT Raised to $450 at Wells Fargo After a Muted Earnings Report

Wells Fargo analyst Aaron Rakers raised the price target on Broadcom Limited (NASDAQ: AVGO) to $450.00 (from $410.00) after the company reported in-line F1Q21 results and a slightly above-consensus guide. Results for F1Q21 of Revenue, EBITDA, and EPS of $6.655B /$3.941B / $6.61 compared to the Street consensus $6.605B / $3.885B / $6.57). The company's F2Q21 guide was slightly above prior street expectations with Rev. at ~$6.6B vs. prior street $6.3B; adj. EBITDA implied at $3.84B vs. prior street at $3.66B.

The analyst maintained the Equal Weight rating, stating "While Broadcom remains a very strong FCF and capital return story, and we are positive on the company's core semi franchises (driven by the proliferation of connectivity), we see shares continuing to trade in the mid/high-teens forward P/E multiple range; company commentary will likely leave investors increasingly focused on the risk of double-ordering amid lengthening lead times and customer buffer inventory builds, as well as commentary suggesting an increased appetite for the next M&A move (software)."

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