Investing.com - Bank of America Securities lifted its 12-month price target on Broadcom (NASDAQ:AVGO) ahead of its first quarter results next week, expecting solid results.
BofA lifts its 12-month price target to $1500, from $1250, keeping a ‘buy’ rating. Its stock closed Thursday at $1300.49.
Broadcom is a global supplier of a wide range of semiconductor and infrastructure software products, and BofA noted that expectations are modestly elevated following many of its AI peers.
“While AI datapoints have been strong, they only account for ~25% of semi and 15% of total sales, with the remainder exposed to muted enterprise/telco capex and to risk of some customer inventory adjustments. So, it’s possible we see stock volatility if FY24 estimates are broadly unchanged,” BofA analysts said, in a note dated Feb. 29.
“However, we expect any stock pullback to be likely short lived as investors look forward to Broadcom’s Mar-20 AI Investor Day, and as investors continue to appreciate its unique combination of capital appreciation, dividend yield/growth and its position as a “low beta” AI beneficiary,” the bank added.