Forecasting The Future: 14 Analyst Projections For Broadcom

14 analysts have shared their evaluations of Broadcom AVGO during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Broadcom and provided 12-month price targets. The average target is $1305.71, accompanied by a high estimate of $1550.00 and a low estimate of $1000.00. Witnessing a positive shift, the current average has risen by 12.56% from the previous average price target of $1160.00.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive Broadcom is derived from recent analyst actions. The following is a detailed summary of 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Broadcom compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Broadcom's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Broadcom's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious 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.

Broadcom: Financial Performance Dissected

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Broadcom's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2023, the company achieved a revenue growth rate of approximately 4.09%. This indicates 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: Broadcom's net margin excels beyond industry benchmarks, reaching 37.91%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 15.3%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.88%, the company showcases effective utilization of assets.

Debt Management: Broadcom's debt-to-equity ratio stands notably higher than the industry average, reaching 1.64. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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