Oppenheimer Maintains Bullish Views Ahead of Avago Tech (AVGO) 2Q Results

Oppenheimer maintains an Outperform rating and $140 price target on Avago Technologies (NASDAQ: AVGO) leading up to the 2Q results. AVGO is scheduled to release its 2Q earnings report on May 28th, after market close.

Analyst Rick Schafer commented on AVGO, saying, "AVGO reports F2Q (Apr.) results Thursday (5/28) after the close. We see a modestly positive bias to print/guide. Reflecting recent peer commentary, storage (~30% of sales) will likely prove a drag, though AVGO's storage mix favoring DC/Cloud should provide some buffer against PC (~5% of total sales) weakness. We expect wireless to again provide the top-line spark, as content gains and unit strength at benchmark customers Samsung and AAPL help sustain AVGO's beat/raise momentum. Mgmt's established record of under-promising/over-delivering on cost synergies/accretion targets should further boost EPS this year as the full benefits of LSI and ELX are realized. Maintain Outperform and $140 PT."

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 $131.30 yesterday.

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