UPDATE - Nomura Securities Upgraded Avago Technologies (AVGO) to Buy; Currently Mispriced

UPDATE - Nomura Securities upgraded Avago Technologies (NASDAQ: AVGO) from Neutral to Buy, price target raised from $30 to $35.

Nomura analyst, Romit Shah, said, "We think Avago is mispriced at 10x forward earnings, considering its solid positioning in wireless and recent firming in industrial, which suggests that Street estimates are too low. We believe consensus revenue growth of 2% this year understates the growth potential in wireless handsets. Industrial has been a drag on revenues over the past two quarters but we believe China has bottomed. Overall, our CY12 estimates increase from $2.4b to $2.6b in revenue, and from $2.41 to $2.76 in EPS (non-GAAP incl ESO). Our price target increases from $30 to $35, based on 13x CY12 non- GAAP EPS (incl ESO) of $2.76."

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