CFRA Raises Broadcom Price Target to $380

CFRA analyst Angelo Zino raised the price target on Broadcom Limited (NASDAQ: AVGO) to $380 (from $340) while maintaining a Buy rating.

“We raise our 12-month target to $380 from $340 using a P/E of 34x to our CY 27 EPS estimate of $11.18, above peers and historical.

After posting Jul-Q results and guidance ahead of our views, we lift our FY 25 (Oct.) EPS view to $6.71 from $6.65, FY 26 to $9.00 from $8.13, and FY 27 to $10.95 from $9.82.

The biggest takeaway from AVGO’s call last evening was clearly the greater-than-expected acceleration it now plans to see within its AI semiconductor business, as the company officially added a fourth customer (seen adding $10B in sales) that will ramp in the coming quarters as existing customers also place higher orders (e.g., Alphabet with its TPUs).

We expect AVGO to eventually turn its other three major ASIC prospects into customers, offering even more upside ahead.

Non-semis remain in a slow U-shaped recovery while software execution on revenue/margins remain impressive.

We think investor confidence should also be boosted from news that Hock Tan plans to remain CEO through at least the end of the decade.”

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