BofA/Merrill Lynch analyst Vivek Arya reiterated a Buy rating and bumped his price target on Avago Technologies (NASDAQ: AVGO) to $85.00 (from $77.00) following Q2 results citing multiple levers to drive EPS.

Arya notes Avago delivered a strong 'beat and raise' though with some mixed segment trends (wireless RF strong, wired/industrial
sluggish.

"Regardless, in our view the big picture is solidly on track – the company is accelerating the restructuring of LSI, selling non-core segments and improving organic gross margins on more favorable mix," he said. "

The now believe $6.50 in EPS is within sight for 2016, up from their prior estimate of $6+.

The firm raised FY14E/15E EPS by 15c/12c to $3.99/$5.34

For an analyst ratings summary and ratings history on Avago Technologies click here. For more ratings news on Avago Technologies click here.

Shares of Avago Technologies closed at $70.79 yesterday.