AVGO Shares Surge as Analysts Revise Broadcom Stock Price Target

Broadcom's Strong Performance Drives Analysts to Revise Price Targets

Broadcom Inc. (NASDAQ: AVGO), one of the world’s leading semiconductor manufacturers, has experienced remarkable performance this year. As of now, AVGO stock is trading at $183.18, having rallied by 11.68% over the last thirty days, bringing returns for the last six months to 42.78%. Furthermore, Broadcom shares have surged 68.77% year-to-date (YTD).

In July, the company announced a $5 billion bond deal with JPMorgan, TD Bank, and Truist Securities aimed at paying down some of the debt accrued from its $69 billion acquisition of VMware Inc., completed in November 2023. On October 2, it issued additional notes to bolster its financial standing.

Revised Earnings Projections Attract Analyst Attention

Consequently, the company adjusted its long-term guidance; it now projects earnings per share (EPS) in 2025 to total $6.50, an increase from a previous estimate of $6.47. This strategic move has not gone unnoticed by Wall Street equity researchers, with analysts from five major firms—Bank of America, DBS, Truist Financial, Cantor Fitzgerald, and Mizuho—revising their price targets or reiterating buy ratings on AVGO stock.

• Bank of America: Maintained a ‘Buy’ rating, raising the price target to $215.
• DBS: Maintained a ‘Buy’ rating, revising the target from $204 to $205.
• Truist Securities: Reiterated ‘Buy’ at a target of $205.
• Mizuho Securities: Raised the price target significantly from $190 to $220.
• Cantor Fitzgerald: Increased the price target to $225 from $200, emphasizing strong growth potential.

Of the 27 researchers who issue ratings for the stock, 24 recommend a ‘Buy’, with only 3 holding a ‘Hold’ rating. Although bullish, the average price aligns more closely with DBS’s and Truist’s conservative estimates at $199.57, representing a 9.97% upside.

Concerns Amid Insider Selling

Recent insider sales by Broadcom’s Chief Legal and Corporate Affairs Officer, Mark David Brazeal, have raised some investor concerns. He sold over $7 million worth of shares in early October. However, this move could be interpreted as profit-taking rather than a bearish signal, as Brazeal retains a substantial number of shares.

Broadcom is set to benefit significantly from the booming AI sector. The semiconductor company leads in networking innovations, and the recent launch of the Sian 2 DSP PHY, a competitive industry-leading connectivity product, is likely to enhance the upcoming earnings call, scheduled for December 5.