Broadcom (AVGO) Receives a Buy from Rosenblatt Securities

By Ryan Adsit

Rosenblatt Securities analyst Hans Mosesmann maintained a Buy rating on Broadcom (AVGOResearch Report) today and set a price target of $350. The company’s shares closed yesterday at $281.61.

Mosesmann observed:

“We rate AVGO Buy and maintain our $350 price target. Management revised FY19 sales to $22.5 billion or down ~8% from the previous $24.5 billion on a sudden and sharp move by major customers to reduce inventories on geopolitical uncertainty fueled by the Huawei situation. With the exception of networking, where the company is enjoying various strong product cycles (Tomahawk 3, Trident 4, etc.), management sees all other product categories in a weak near-term environment (including the Apple business). We see management’s guide as an attempt to kitchen-sink the rest of the year and we believe it’s the right move. Fundamentally, the company is seeing solid execution in all focus areas including RF front end 5G, accelerator ASICs for the data center, storage, and of course infrastructure S/W where renewals are strong.”

According to TipRanks.com, Mosesmann is a 5-star analyst with an average return of 11.6% and a 56.7% success rate. Mosesmann covers the Consumer Goods sector, focusing on stocks such as Intel Corporation, Texas Instruments, and Lattice Semicon.

Broadcom has an analyst consensus of Moderate Buy, with a price target consensus of $321.96, representing a 14.3% upside. In a report issued on June 10, MKM Partners also reiterated a Buy rating on the stock with a $310 price target.

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The company has a one-year high of $323.20 and a one-year low of $197.46. Currently, Broadcom has an average volume of 2.86M.

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