4 Broadcom Analysts On 'Solid' Beat-And-Raise Quarter

Broadcom Inc AVGO Thursday reported third-quarter earnings and revenues ahead of expectations.

BofA Securities On Broadcom

Analyst Vivek Arya reiterated a Buy rating and $625 price target.

The company delivered another beat-and-raise quarter, “with FQ3 sales up 25% YoY (despite YoY China declines) and FQ4 guided to 20% YoY,” Arya said in a note.

“Despite macro uncertainty, AVGO is positioned well in more resilient data center/telco networking markets with differentiated assets (Tomahawk, Jericho) and can hold consistent 5%-10%+ long-term growth in wireless segments,” he added.

Raymond James On Broadcom

Analyst Melissa Fairbanks maintained a Market Perform rating.

“The company continues to outperform broader market trends with continued strong y/y growth across all semiconductor business segments — driven by a combination of new product ramps and accelerated upgrade activity across both cloud and enterprise customers,” Fairbanks said.

“While price inflation is also a factor, management estimates roughly 5% of the revenue growth this year is related to higher prices, while content growth and a higher level of systems-based revenue is a much more significant driver,” she added.

Check out other analyst stock ratings.

Rosenblatt Securities On Broadcom

Analyst Hans Mosesmann reiterated a Buy rating and $775 price target. 

Broadcom’s results were “solid,” even against the backdrop of rising skepticism around “the sustainability of infrastructure silicon demand,” Mosesmann wrote in a note.

“Broadcom sees several quarters ahead of 50-week lead-times and shipments to undershoot bookings rates on multiple networking, cloud/enterprise/storage, product cycles,” he added.

KeyBanc Capital Markets On Broadcom

Analyst John Vinh reaffirmed an Overweight rating and reduced the price target from $780 to $700.

Broadcom’s performance showed no indication of a slowdown in near-term trends, Vinh said.

“However, mgmt acknowledged it has limited visibility into the sustainability of demand into 2023, despite maintaining 50-week lead times and non-canceable backlog,” the analyst stated. “We're fine-tuning estimates and reducing our PT to $700 to reflect the contraction in market multiples,” he added.

AVGO Price Action: Shares of Broadcom were trading 4.55% higher at $514.40 midday Friday. 

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