Broadcom (NASDAQ:AVGO) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised Broadcom’s price target from $470 to $485 and kept an overweight rating, implying about 8.6% upside from the prior close.
• Broadcom has a broadly positive analyst backdrop, with multiple firms maintaining or raising bullish targets; the stock currently carries a Moderate Buy consensus and an average target price of $455.07.
• The company’s latest earnings showed strength, with EPS of $2.05 and revenue of $19.31 billion, both ahead of estimates, while revenue jumped 29.5% year over year.

Broadcom (NASDAQ:AVGO - Get Free Report) had its price objective lifted by stock analysts at Morgan Stanley from $470.00 to $485.00 in a report released on Monday,Benzinga reports. The firm presently has an "overweight" rating on the semiconductor manufacturer's stock. Morgan Stanley's price target points to a potential upside of 8.56% from the stock's previous close.

AVGO has been the subject of a number of other reports. Benchmark reaffirmed a "buy" rating and issued a $485.00 price objective on shares of Broadcom in a research report on Thursday, March 5th. Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a research report on Wednesday, April 8th. UBS Group reissued a "buy" rating and set a $490.00 target price (up from $475.00) on shares of Broadcom in a research report on Monday, May 18th. Truist Financial increased their target price on shares of Broadcom from $510.00 to $545.00 and gave the company a "buy" rating in a research report on Thursday, March 5th. Finally, Erste Group Bank downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $455.07.

Broadcom Stock Performance

Shares of AVGO stock opened at $446.77 on Monday. Broadcom has a 52-week low of $234.90 and a 52-week high of $448.90. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The company has a 50-day simple moving average of $383.52 and a two-hundred day simple moving average of $358.56. The company has a market capitalization of $2.12 trillion, a price-to-earnings ratio of 87.26, a PEG ratio of 0.92 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The business had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same period in the prior year, the firm posted $1.60 EPS. The firm's quarterly revenue was up 29.5% compared to the same quarter last year. Research analysts anticipate that Broadcom will post 9.91 EPS for the current fiscal year.

Insider Activity at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 1,000 shares of the stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $358.31, for a total value of $358,310.00. Following the sale, the director directly owned 32,352 shares in the company, valued at $11,592,045.12. This represents a 3.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Justine Page sold 2,018 shares of the stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total transaction of $712,354.00. Following the completion of the sale, the director owned 18,164 shares in the company, valued at $6,411,892. This represents a 10.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 324,282 shares of company stock worth $106,425,249 in the last ninety days. Insiders own 1.90% of the company's stock.

Institutional Trading of Broadcom

Several institutional investors and hedge funds have recently bought and sold shares of the company. Brown Brothers Harriman & Co. grew its stake in Broadcom by 10.7% during the third quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock valued at $25,539,000 after acquiring an additional 7,499 shares in the last quarter. Dana Investment Advisors Inc. grew its stake in Broadcom by 2.6% during the third quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer's stock valued at $57,325,000 after acquiring an additional 4,442 shares in the last quarter. Guinness Atkinson Asset Management Inc raised its stake in Broadcom by 248.2% during the third quarter. Guinness Atkinson Asset Management Inc now owns 26,238 shares of the semiconductor manufacturer's stock valued at $8,603,000 after purchasing an additional 18,703 shares in the last quarter. Rockline Wealth Management LLC raised its stake in Broadcom by 19.8% during the third quarter. Rockline Wealth Management LLC now owns 53,768 shares of the semiconductor manufacturer's stock valued at $17,739,000 after purchasing an additional 8,902 shares in the last quarter. Finally, Sovran Advisors LLC raised its stake in Broadcom by 121.3% during the fourth quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer's stock valued at $10,507,000 after purchasing an additional 16,789 shares in the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analysts at Susquehanna are reportedly upbeat on Broadcom ahead of Q2 results, reinforcing optimism around the company’s AI and semiconductor demand story. Broadcom sees bullish views at Susquehanna ahead of Q2 results
• Positive Sentiment: Traders expect a sizable earnings-related move in Broadcom shares, suggesting elevated interest and a setup for an upside breakout if the company beats expectations. Broadcom Reports Earnings Wednesday. Here's How Much Traders Expect the Stock to Move
• Positive Sentiment: Broadcom was highlighted as one of the better dividend-paying stocks to own, which may support investor confidence in the name. Broadcom (AVGO) – Among the 15 Best Dividend Paying Stocks to Buy Right Now
• Positive Sentiment: Coverage also noted Broadcom’s launch of a broadband chip with AI capabilities, underscoring its continued exposure to AI-related growth themes. Broadcom Inc (AVGO) Launches Broadband Chip With AI Capabilities
• Neutral Sentiment: Broadcom remains a closely watched large-cap chip stock this week, with broader market attention building ahead of earnings and key economic data. Jobs, Broadcom, CrowdStrike, Planet Labs, Macy's, and More to Watch This Week
• Negative Sentiment: A reported bearish bet from investor Leopold Aschenbrenner introduces some caution, though it appears less prominent than the bullish earnings setup. Broadcom Inc. (AVGO): Leopold Aschenbrenner Reveals Bearish Bet

About Broadcom

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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