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Broadcom's Strong Results, Forecast, Draw Analyst Praise

·1 min read

By Christiana Sciaudone

Investing.com -- Broadcom (NASDAQ:AVGO) rose 2.6% after getting a slew of price target increases following earnings.

Mizuho said the company is well-positioned with leadership in growing markets, while Bank of America (NYSE:BAC) noted high-quality growth despite supply constraints, StreetInsider reported.

Broadcom is benefitting from a rise in 5G and a chip shortage amid a frenzy of demand. Earnings per share for the fiscal second quarter of $6.62 were better than the expected $6.43 on sales of $6.61 billion, higher than the predicted $6.51 billion, according to data compiled by Investing.com.

For the fiscal third quarter, the company estimates revenue of $6.75 billion, topping consensus of $6.59 billion.

Bank of America's Vivek Arya placed a Street-high price target of $580 on Broadcom, up from $550. Several markets served by the company are seeing more than 30% growth year-on-year, and possible mergers and acquisitions ahead, he said.

KeyBanc reiterated its overweight rating on the stock seeing bookings continuing to strengthen, alongside a promising outlook for the second half of 2021. The iPhone 13 may also help push results.

Mizuho increased its price target on the shares to $520 from $490.

“We continue to see AVGO well positioned, with leadership in growing markets driven by secular trends 5G and data center, high margins, and strong FCF," the firm said. "AVGO also highlighted an Enterprise recovery beginning, which should be positive for INTC.”

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