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Analysts Give Broadcom/CA Merger Mixed Reviews

Martin Cassidy

"This deal hurts management's credibility," Nomura Instinet analyst Romit Shah wrote in a note about the merger. Broadcom announced plans late Wednesday to buy CA for $44.50 a share in cash -- a 20% premium from the stock's price prior to the deal's disclosure. CFRA Research analyst Angelo Zino likewise scaled back his AVGO price target to $280 from an earlier $312 because he believes the deal will reduce Broadcom's top-line growth to 3% from a previously expected 5%.