6 Analysts Assess Broadcom: What You Need To Know

Throughout the last three months, 6 analysts have evaluated Broadcom AVGO, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Broadcom and provided 12-month price targets. The average target is $215.83, accompanied by a high estimate of $240.00 and a low estimate of $200.00. Marking an increase of 9.84%, the current average surpasses the previous average price target of $196.50.

Investigating Analyst Ratings: An Elaborate Study

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 respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Broadcom. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Broadcom compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Broadcom's stock. This examination reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Broadcom's market standing. Stay informed and make data-driven decisions with 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 Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Broadcom's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 47.27%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Broadcom's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -14.34%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Broadcom's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.77%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Broadcom's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.09%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Broadcom's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.07, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

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.

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