Mizuho Raise Estimates, PT on Avago (AVGO) on Solid Execution
Mizuho Securities reiterated a Buy rating on Avago Technologies (NASDAQ: AVGO), and raised the price target to $175.00 (from $165.00), following the company's 4Q earnings report. AVGO reported solid revenues of $1.85B, in-line with consensus. EPS was reported at $2.51, beating consensus' estimate of $2.38. The company guided to a stable JanQ despite handset concerns.
Analyst Vijay Rakesh commented, "AVGO reported a solid 4Q15 Rev/EPS at $1.85B/$2.51, with GMs and OM ~200bps ahead of consensus. The company guided to a stable JanQ despite handset concerns. With the weakest handset quarter behind and AVGO preparing for the BRCM acquisition close, we believe this presents an opportunity for investors. With post-merger EPS/FCF of ~$13-$14/$5.75B/yr by 2017E, plus a dividend, we view AVGO as a core semiconductor holding. Reiterating our Buy, raising estimates and raising PT to $175."
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Shares of Avago Technologies closed at $132.21 yesterday.