RBC Capital Remains Bullish on Broadcom Ltd. (AVGO) Following Strong 3Q
RBC Capital reiterated a Top Pick rating and $190.00 price target on Broadcom Limited (NASDAQ: AVGO) following the company's 3Q report. AVGO reported above expectations with non-GAAP revenues of $3.80B ahead of the Street at $3.76B. EPS of $2.89 came in ahead of $2.77 estimates.
Analyst Amit Daryanani commented, "AVGO reported another impressive quarter and guided Oct-qtr conservatively but yet ahead of current street expectations. We see AVGO benefitting from a confluence of multiple tailwinds over the next few quarters: 1) content uptick at AAPL that should enable wireless segment growth of 30%+, 2) sustained growth in wired infrastructure driven by Tomahawk ramps & alleviation of production bottlenecks within STB and 3) OPEX savings from ERP integration and other BRCM centric cost take-outs. Fundamentally, we think AVGO is positioned to sustain $13.50+ EPS in FY17 and >$16.00 EPS by FY19 (implying mid-teens EPS CAGR). Maintain Top Pick & $190 target."
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Shares of Broadcom Limited closed at $177.09 yesterday.