In a report released today, Christopher Rolland from Susquehanna reiterated a Buy rating on Broadcom (AVGO – Research Report), with a price target of $250.00.
Christopher Rolland has given his Buy rating due to a combination of factors that highlight Broadcom’s strong market position and growth potential. The company’s involvement in AI networking and the optimization of its VMware portfolio are expected to drive continued momentum, supported by positive demand checks and increased investments from hyperscalers in AI technologies. Additionally, Broadcom’s custom silicon business is poised to benefit from the Google TPU ramp, despite some volatility in deployment timing.
Furthermore, Broadcom’s strategic initiatives, such as transitioning VMware customers to subscriptions and exploring new hyperscale ASIC opportunities, are anticipated to provide ongoing business tailwinds. The company’s financial metrics, including a low net debt to EBITDA ratio and a robust free cash flow yield, reinforce its solid financial standing. While there are potential risks, such as the development of an in-house Wi-Fi/BT chip by Apple, the overall outlook remains optimistic, leading to an increased price target and a Buy rating from Rolland.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AVGO in relation to earlier this year.