Broadcom (NASDAQ:AVGO) Stock Gets Downgrade from Rothschild & Co Redburn

Broadcom (NASDAQ:AVGO - Get Free Report) was downgraded by investment analysts at Rothschild & Co Redburn from a "buy" rating to a "neutral" rating in a note issued to investors on Friday, Briefing.com reports. They currently have a $398.00 price target on the semiconductor manufacturer's stock. Rothschild & Co Redburn's price target indicates a potential upside of 9.23% from the stock's current price.

Several other equities research analysts have also recently commented on AVGO. Sanford C. Bernstein reaffirmed a "buy" rating on shares of Broadcom in a report on Monday, September 21st. Lake Street Capital raised Broadcom to a "buy" rating in a research note on Thursday, September 3rd. Arete Research upped their target price on Broadcom from $488.00 to $530.00 and gave the company a "buy" rating in a report on Tuesday, July 21st. Citic Securities raised Broadcom to a "buy" rating and raised their target price for the stock from $450.00 to $525.00 in a research note on Tuesday, September 8th. Finally, Royal Bank Of Canada assumed coverage on Broadcom in a report on Thursday, September 3rd. They set an "outperform" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus target price of $525.19.

Broadcom Stock Up 5.5%

Shares of NASDAQ AVGO opened at $364.36 on Friday. Broadcom has a 12-month low of $289.77 and a 12-month high of $495.00. The stock has a market cap of $1.74 trillion, a PE ratio of 46.53 and a beta of 1.49. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The company has a 50-day moving average of $345.59 and a 200 day moving average of $366.48.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business's revenue was up 85.5% on a year-over-year basis. During the same period last year, the company posted $1.69 EPS. As a group, sell-side analysts predict that Broadcom will post 10.20 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. NerdWallet Wealth Partners LLC grew its holdings in shares of Broadcom by 2.6% during the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer's stock worth $399,000 after purchasing an additional 27 shares during the period. Veery Capital LLC raised its holdings in Broadcom by 1.4% in the 2nd quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer's stock valued at $718,000 after buying an additional 27 shares during the period. Ridgeline Wealth Planning LLC raised its holdings in Broadcom by 2.1% in the 2nd quarter. Ridgeline Wealth Planning LLC now owns 1,302 shares of the semiconductor manufacturer's stock valued at $492,000 after buying an additional 27 shares during the period. Meridian Management Co. raised its holdings in Broadcom by 0.3% in the 1st quarter. Meridian Management Co. now owns 9,425 shares of the semiconductor manufacturer's stock valued at $2,917,000 after buying an additional 28 shares during the period. Finally, Arkansas Financial Group Inc. lifted its position in Broadcom by 3.5% in the second quarter. Arkansas Financial Group Inc. now owns 866 shares of the semiconductor manufacturer's stock valued at $327,000 after buying an additional 29 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Broadcom

Investors following AVGO have been watching these headlines:

• Neutral Sentiment: A recent four-day rally of more than 20% has renewed attention on the shares. The article notes that five of six comparable surges since 2009 were followed by gains over the next year, though that historical pattern does not guarantee future performance. Broadcom Stock Just Jumped More Than 20% in 4 Days
• Negative Sentiment: Rothschild Redburn downgraded Broadcom from Buy to Neutral and cut its price target by 33%, from $595 to $398, citing concerns about AI financing. The move highlights investor worries about the funding and credit risks attached to large AI commitments. Wall Street sets Broadcom stock price target for next 12 months
• Negative Sentiment: Broadcom’s growing reliance on a small group of customers is another risk: its five largest end customers accounted for about 55% of recent-quarter revenue, according to a recent analysis. Here's My Biggest Worry About Broadcom Stock

Broadcom Company Profile

Broadcom Inc. is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics. Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.

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