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Investing.com - CFRA raised its price target on Broadcom Limited (NASDAQ:AVGO) to $380.00 from $340.00 while maintaining a Buy rating following the company’s July quarter results. The company, which boasts impressive gross profit margins of 77.19% and has achieved a robust revenue growth of 28.01% over the last twelve months, continues to demonstrate strong market performance according to InvestingPro data.
The research firm cited Broadcom’s accelerating AI semiconductor business as the primary driver for the increased target, noting the addition of a fourth customer expected to generate $10 billion in sales in coming quarters. As a prominent player in the Semiconductors & Semiconductor Equipment industry, Broadcom’s expansion aligns with InvestingPro’s analysis showing strong financial health metrics and sustained growth potential.
CFRA adjusted its earnings estimates upward, raising its fiscal year 2025 EPS view to $6.71 from $6.65, FY 2026 to $9.00 from $8.13, and FY 2027 to $10.95 from $9.82.
The firm highlighted that existing customers, including Alphabet with its TPUs, are placing higher orders, while Broadcom’s three other major ASIC prospects could potentially become customers, offering additional growth opportunities.
CFRA also noted that investor confidence should strengthen with the news that CEO Hock Tan plans to remain in his position through at least the end of the decade, while the company’s non-semiconductor segments show signs of a slow U-shaped recovery.
In other recent news, Broadcom has seen a series of positive developments. The semiconductor company reported strong fiscal third-quarter results, with AI semiconductor revenues increasing by 63% year-over-year to $5.2 billion. This growth marks an acceleration from the previous quarter’s 46% growth, with further acceleration to 66% year-over-year expected in the fiscal fourth quarter. Following these results, KeyBanc raised its price target for Broadcom to $400, maintaining an Overweight rating. Truist Securities also increased its price target to $365, citing a significant uptick in AI infrastructure backlog and the addition of a fourth AI infrastructure customer. Similarly, TD Cowen raised its price target to $370, highlighting strong results and guidance related to Broadcom’s tensor processing unit business. Piper Sandler joined in by raising its target to $375, noting robust year-over-year growth and a $10 billion order from a fourth customer. These changes reflect optimism about Broadcom’s position in the AI market and its potential for continued growth.
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