Piper Sandler analyst Harsh Kumar raised the price target on Broadcom Inc. to $750 from $680 and reiterated an Overweight.
The price target implies a 12.7 percent upside to December 31, 2021 closing price.
Kumar changed his overall posture about the semiconductor industry in 2022.
Kumar feels the new year will be a stock picker’s market with specific areas that will continue to win and others that will not perform well.
For 2022, Kumar favors “larger, more profitable, cash-generating names that have a clear growth path ahead of them based on end-markets.”
Kumar sees cloud, enterprise, 5G infrastructure, electric vehicles, and connectivity as the primary focus areas.
The analyst is cautious on the automotive end-market more broadly and PCs.