In a report released yesterday, Harsh Kumar from Piper Sandler reiterated a Buy rating on Broadcom (AVGO – Research Report), with a price target of $250.00.
Harsh Kumar has given his Buy rating due to a combination of factors that highlight Broadcom’s strong performance and growth potential. The company reported impressive quarterly results, surpassing expectations with significant revenue from its XPU and AI-related networking segments. This growth is further supported by Broadcom’s collaboration with additional customers on custom ASIC solutions, which expands its market opportunities.
Moreover, Broadcom’s enterprise software segment showed robust growth, and the transition to subscription licenses is enhancing its revenue model. The company’s ability to generate substantial free cash flow, representing 40% of its revenue, underscores its financial strength. These factors, coupled with optimistic revenue and earnings projections for the coming years, justify the Buy rating from Harsh Kumar.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $250.00 price target.
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.