Broadcom (AVGO) Strategy Is Confusing But Cash Flow Caps Downside - Mizuho

Mizuho Securities analyst, Vijay Rakesh, reiterated his Buy rating on shares of Broadcom (NASDAQ: BRCM) but cut his price target to $280 from $310 after the company announced the confusing acquisition of CA.

The analyst stated "with the recently announced acquisition of CA we believe there is more investor confusion on the direction of AVGO. Nonetheless, given a combined F19E EPS of ~$26, we believe a combined AVGO+CA will drive ~$8-9B of FCF/year, with a total debt of ~$24B and combined cash on hand of ~$9B. We are adjusting our AVGO PT to $280.

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

Shares of Broadcom closed at $54.67 yesterday.

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