- RBC says potential acquisition targets for Broadcom (AVGO +1.3%) include Xilinx (XLNX +1.3%), Analog Devices (ADI +0.5%), Maxim Integrated Products (MXIM -0.8%), Marvell Technology (MRVL +0.2%), and Microsemi (MSCC +1.4%).
- Analyst Amit Daryanani says an acquisition could happen if the Qualcomm (NASDAQ:QCOM) bid fails and says Broadcom has a “unique position” to buy with $9B to $10B in FCF generation each year, successful asset integration, and a healthy balance sheet.
- The analyst says Xilinx meets most of Broadcom’s requirements but could have a valuation that’s too high. Analog Devices and Maxim could have limited margin expansion potential. Marvell would prove a good fit but could hit regulatory issues.
- Source: Bloomberg First Word.
- Previously: Broadcom lowers Qualcomm offer to $79/share after NXP news (Feb. 21)
- Previously: Qualcomm: Broadcom offer 'even worse' despite certainty around NXP deal (Feb. 21)
- Now read: Broadcom's Attempt At Bargain Shopping
Original article