Analysts lifted their price targets on Broadcom Inc., citing deal prospects and demand for its products.
Goldman Sachs maintained a Buy and raised the price target from $589 to $670 (7.8 percent upside).
Barclays analyst Blayne Curtis raised the price target to $650 from $540 (4.6 percent upside) and kept an Overweight.
The company’s next deal “will always be the major catalyst,” but in the interim, it is raising the dividend and buying back stock, “which should be gravy on top of a story levered to some of the best trends in FY22,” Curtis says.
Citi analyst Christopher Danely raised the price target to $685 from $585 (10.2 percent upside) and reiterated a Buy.
Broadcom continues to see robust demand for its networking and storage products due to strength from the enterprise and cloud end markets, Danely says.
Baird analyst Tristan Gerra raised the price target to $690 from $550 (11 percent upside) and kept an Outperform.
The analyst said its results suggest software continues to deliver revenue growth above the mid-single-digit target, with a total backlog of 15 percent year-over-year. In contrast, semiconductor growth continues to track in the high-teens year-over-year.
He also said the new $10 billion share buyback does not preclude a potential acquisition in 2022.
By Anusuya Lahiri
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.