Broadcom (AVGO) Beats Expectations, Analysts Bullish on Future Growth

Evercore ISI Group's Matthew Prisco raised their price target on Broadcom (NASDAQ: AVGO) by 24.1% from $1,620 to $2,010 on 2024/06/13. The analyst maintained their Buy rating on the stock.

Prisco's positive outlook on Broadcom comes after the company's impressive Q2 2024 earnings report. The report revealed that Broadcom beat EPS and revenue expectations by 4% and 1% respectively. The company reported an EPS of $10.96, surpassing the Zacks Consensus Estimate of $10.79. Additionally, Broadcom's revenue for the quarter reached $12.49B, exceeding the Zacks Consensus Estimate by 3.71%.

Management also delivered a strong outlook, raising the annual revenue forecast by 2% to $51B. Prisco believes that this guidance still "appears conservative" considering the company's expansion into the AI silicon and Ethernet solutions markets.

Broadcom's President & CEO, Hock Tan, commented on the Q2 results, stating that the strong performance was driven by AI demand and VMware. Tan noted that revenue from AI products reached a record $3.1B during the quarter. The company also experienced accelerated growth in infrastructure software revenue as more enterprises adopted the VMware software stack.

In addition to Prisco's rating update, other analysts also revised their price targets for Broadcom on June 13, 2024. Wells Fargo's Aaron Rakers raised their target by 18.9% to $1,700 and maintained a Hold rating. Goldman Sachs's Toshiya Hari raised their target by 19.4% to $1,850 and maintained a Strong Buy rating. Meanwhile, Oppenheimer's Rick Schafer raised their target by 33.3% to $2,000 and maintained a Buy rating.

The overall sentiment among analysts remains overwhelmingly positive, with 95.5% of top-rated analysts rating AVGO as a Strong Buy or Buy. Only 4.5% see it as a Hold, with no analysts recommending or strongly recommending selling the stock.

The consensus forecast among analysts projects that AVGO's upcoming year will deliver earnings per share (EPS) of $30.81. If these projections hold true, AVGO's next yearly EPS will see a 28.5% increase on a year-over-year basis.

Investors have responded positively to Broadcom's recent performance, with the stock price rising 12.3% since the latest quarterly report on June 12, 2024. On a year-over-year basis, the stock is up an impressive 97.3%, outpacing the S&P 500, which has experienced a 24.4% increase during the same period.

It's worth noting that Matthew Prisco, the analyst who raised the price target for Broadcom, is ranked by WallStreetZen in the bottom 28% out of 4,602 Wall Street analysts. Prisco specializes in the Technology and Consumer Cyclical sectors and has an average return of -4.4% and a 50% win rate.

Broadcom Inc., headquartered in San Jose, California, is a leading designer, developer, and supplier of semiconductor devices. The company focuses on complex digital and mixed-signal complementary metal-oxide-semiconductor devices, as well as analog III-V based products. Broadcom operates in two segments: Semiconductor Solutions and Infrastructure Software. Their products are widely used in various applications, including enterprise and data center networking, home connectivity, telecommunications, smartphones, and electronic displays.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.