RBC Capital Raises Broadcom Price Target to $400

RBC Capital analyst Srini Pajjuri raised the price target on Broadcom Limited (NASDAQ: AVGO) to $400.00 (from $360.00) while maintaining a Sector Perform rating.

“AVGO’s results and outlook were slightly ahead of consensus. AI Semi bookings were strong and visibility is extending beyond FY27.

On the other hand, 3Q AI revenue outlook likely fell short of recent investor expectations and management’s decision to reiterate and not raise FY27 AI outlook is also a surprise especially given the robust demand backdrop.

We do not see any structural issues and surmise that power/data center constraints and conservatism are playing a role.

Whatever the case, we expect the stock to remain range bound given limited near-term upside potential, premium valuation to NVDA, and lack of incremental catalysts. Reiterate Sector Perform.”

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