Broadcom (NASDAQ:AVGO) Upgraded by Wall Street Zen to "Strong-Buy" Rating

Key Points

• Broadcom was upgraded by Wall Street Zen from “buy” to “strong-buy,” and other analysts have also turned bullish, leaving the stock with a consensus rating of Moderate Buy and an average target price of $490.13.
• Recent earnings were strong: Broadcom reported $2.44 EPS versus $2.40 expected and revenue of $22.19 billion, with sales up 47.9% year over year and profits remaining highly solid.
• Despite the upbeat fundamentals, the shares traded at $382.07 on Monday, below several analyst price targets, while insiders have been selling stock and some market commentary remains cautious about margins and AI valuation.

Broadcom (NASDAQ:AVGO - Get Free Report) was upgraded by Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued to clients and investors on Monday.

Several other research analysts have also issued reports on AVGO. Erste Group Bank upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a report on Friday, June 5th. Truist Financial raised their target price on Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $525.00 target price on shares of Broadcom in a research report on Thursday, June 4th. Citigroup reaffirmed a "buy" rating on shares of Broadcom in a research note on Thursday, June 4th. Finally, Jefferies Financial Group set a $550.00 price target on Broadcom and gave the stock a "buy" rating in a report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $490.13.

Broadcom Stock Performance

Shares of Broadcom stock opened at $382.07 on Monday. The company has a 50 day moving average of $404.26 and a 200-day moving average of $363.22. Broadcom has a 1-year low of $244.17 and a 1-year high of $495.00. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a market cap of $1.82 trillion, a PE ratio of 63.68, a price-to-earnings-growth ratio of 0.67 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same period last year, the firm posted $1.58 earnings per share. The firm's quarterly revenue was up 47.9% compared to the same quarter last year. As a group, equities research analysts forecast that Broadcom will post 10.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the completion of the sale, the insider directly owned 278,141 shares of the company's stock, valued at $89,450,145.60. This represents a 15.36% decrease in their ownership of the stock. The sale 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 firm's stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the completion of the transaction, the director owned 18,164 shares in the company, valued at $6,411,892. This represents a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 215,970 shares of company stock worth $71,104,945 in the last 90 days. Company insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Broadcom

A number of institutional investors and hedge funds have recently bought and sold shares of AVGO. ROSS JOHNSON & Associates LLC grew its position in Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after purchasing an additional 66 shares in the last quarter. Networth Advisors LLC increased its stake in Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 71 shares during the last quarter. SWAN Capital LLC lifted its position in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 55 shares in the last quarter. Miller Global Investments LLC purchased a new position in shares of Broadcom in the 4th quarter worth approximately $31,000. Finally, Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom in the 4th quarter worth approximately $33,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s quarterly results were very strong, with revenue up 48% to a record $22.2 billion, semiconductor revenue up 79%, AI semiconductor revenue up 143% to $10.8 billion, and more than $30 billion in AI bookings, suggesting demand remains robust. Article Title
• Positive Sentiment: Several analysts and commentators argue the recent drop could be a buying opportunity, saying Broadcom remains a core infrastructure winner in AI and that Wall Street’s long-term outlook is still constructive. Article Title
• Positive Sentiment: Fresh coverage highlighted Broadcom as one of the stocks with catalysts heading into the second half of the year, and some analysts have raised earnings forecasts and price targets despite the selloff. Article Title
• Neutral Sentiment: Jim Cramer said Broadcom’s earnings were “not good” and suggested tech stocks are harder to trust as leadership names, reflecting a more cautious market mood around the stock. Article Title
• Neutral Sentiment: Broadcom also announced cash tender offers for certain outstanding debt securities, a routine balance-sheet move that is unlikely to move the stock by itself. Article Title
• Negative Sentiment: Market commentary says the stock is being punished because investors are nitpicking Broadcom’s AI outlook and pricing the shares as if growth must keep accelerating without any hiccups. Article Title
• Negative Sentiment: One note warned that Broadcom told investors to expect gross profit margins to continue falling, reinforcing concerns that profitability may soften even as revenue grows. Article Title

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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