Broadcom Limited (AVGO) PT Raised to $410 at RBC Capital

RBC Capital analyst Mitch Steves raised the price target on Broadcom Limited (NASDAQ: AVGO) to $410.00 (from $400.00) after the company reported a solid Jul-qtr and Oct-qtr guide that was better than expected with 4 key takeaways:

1) Networking was up 9% q/q due to continued healthy demand from cloud customers due to next generation products. They anticipate seeing sustained growth in this segment in to Q4 as well.

2) Broadband was up 7% q/q in Q3 and as they saw strong demand for next generation cable products (offset by weakness is STBs). For Q4, the firm believes this sub-segment will be down q/q but up ~20% y/y.

3) Wireless is expected to be up 50% q/q in Q4. Q1 in wireless should be up q/q vs. Q4

4) in Q4 double digit declines in industrial should occur due to inventory management

The analyst maintained an Outperform rating, stating "while there were multiple moving parts, the results were better than expected primarily highlighted by better results from networking and a change in seasonality related to wireless".

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