Broadcom Limited (AVGO) PT Raised to $240 at Deutsche Bank
Deutsche Bank analyst Ross Seymore raised the price target on Broadcom Limited (NASDAQ: AVGO) to $240.00 (from $190.00) while maintaining a Buy rating.
The analyst comments "Unlike their previous report, not only did AVGO deliver a solid report/guide (top-line ~in-line/+4% vs. DBe in the report/guide, respectively) but they more importantly provided meaningful upside to their LT expectations for AI-related revenues, outlining a FY27 SAM of ~$60-90B for solely their 3 current hyperscale customers, an impressive figure even allowing for significant uncertainty on the exact market share AVGO can attain/address, as well as the component mix (XPU, GPU, Networking, HBM etc.). In addition to this SAM outlook, management announced that they had secured 2 additional hyperscale customers for their XPU business, delivering important diversification, growth potential and endorsement of hyperscalers’ rising appetite for custom processing solutions. On the Software side, despite a slight miss in F4Q, F1Q25 and beyond are expected to continue delivering steady growth (and impressive 72% OM). Overall, the combination of AVGO’s better-than-feared F1Q25 guide, AI confidence (SAM, customer expansion) and strong VMW execution should maintain the strong momentum for the company’s fundamentals and share price. Consequently, we reiterate our Buy rating and raise our P/T to $240 based on a P/E of ~30x CY26 (in-line with our multiple for leading AI peers)."