Erste Group Downgrades Broadcom to Hold
Erste Group analyst Hans Engel downgraded Broadcom Limited (NASDAQ: AVGO) from Buy to Hold.
“The company expects the very positive momentum to continue in the third quarter of the new fiscal year.
Revenue is expected to total approximately USD 29.4 billion, representing an increase of +89% year-over-year. Broadcom expects revenue from AI semiconductors, in particular, to rise to USD 16 bn.
Both the gross margin and the operating margin are expected to remain stable at a high level.
However, the stock’s high valuation already reflects much of this positive outlook. The potential for further price appreciation currently appears limited.”
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