Broadcom price target raised to $275 from $260 at KeyBanc

KeyBanc raised the firm’s price target on Broadcom (AVGO) to $275 from $260 and keeps an Overweight rating on the shares. The firm notes the company reported strong Q1 results and Q2 guidance, which exceeded expectations. Upside was driven by AI revenues of $4.1B, which exceeded guidance of $3.8B due to stronger networking revenues. Notably, Broadcom announced two additional AI “engagement partners” for a total of four — KeyBanc believes two of four are Apple (AAPL) and Microsoft (MSFT)-backed OpenAI. The firm is encouraged by these strong results, as Broadcom strengthens its position as a leading custom AI ASIC provider.