Decoding 12 Analyst Evaluations For Broadcom

12 analysts have expressed a variety of opinions on Broadcom AVGO over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $1158.33, along with a high estimate of $1325.00 and a low estimate of $1000.00. This upward trend is evident, with the current average reflecting a 17.9% increase from the previous average price target of $982.50.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Broadcom by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Broadcom. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Broadcom compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Broadcom's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Broadcom's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Broadcom analyst ratings.

Delving into Broadcom's Background

Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.

Understanding the Numbers: Broadcom's Finances

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Broadcom's remarkable performance in 3 months is evident. As of 31 October, 2023, the company achieved an impressive revenue growth rate of 4.09%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 37.91%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Broadcom's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.3% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Broadcom's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.88% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.64, caution is advised due to increased financial risk.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.