Bank of America Lowers Broadcom Price Target to $450
BofA Securities analyst Vivek Arya lowered the price target on Broadcom Limited (NASDAQ: AVGO) to $450.00 (from $500.00) while maintaining a Buy rating.
“Reassuring earnings call from AVGO with: 1) FY27 AI sales now guided to $100bn+, or 20% above consensus, 2) AI margins to sustain despite mix partly on raised prices to Anthropic, 3) 6th hyperscaler added and Meta reaffirmed in XPU projects, with visibility now extending multiple years, and 4) networking mix to rise.
Management made a strong case for the strategic nature of its AI engagements refuting competitive and customer insourcing concerns. Reit.
Buy & raise FY26/27/28 pf-EPS (excluding stock comp expense) by 2%/16%/37% to $10.94/$17.05/$23.21. Tweak down PO to $450 from $500 on lower sector multiples, and now using a 26x multiple (vs.
33x prior) applied to CY27E EPS (incl. stock comp expense) of $17.00 (to make it comparable to NVDA’s new reporting) and in-line with AVGO’s historical trading multiple.
Read-across wise we see as positive for AI peers NVDA, AMD, as well as CRDO (longer lifetime for copper).”
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
