Oppenheimer and Co. analyst Rick Schafer raised its price target on Broadcom Limited (NASDAQ: AVGO) to $240.00 (from $215.00) while maintaining a Outperform rating ahead of fiscal fourth quarter results expected after the close Wednesday, suggesting upside to consensus projections.

Schafer comments, "Broadcom (AVGO) reports F4Q (Jan.) results after the close Wednesday. We are raising our price target to $240 (from $215) ahead of what we anticipate will be a beat//raise set-up. We see upside to consensus $4.07B/$3.47 and $3.91B/$3.21 F4Q and F1Q (Apr.) estimates led by ~20% customer AAPL, where we estimate AVGO content is up ~30% iP7/iP6s. We see additional upside potential from Wired, as legacy BRCM products continue to ramp. AVGO is the group's best self-help story in our view, with multiple levers driving FCF/EPS upside. We believe AVGO could further boost capital return while maintaining ample dry powder for M&A. We continue to like AVGO's dominant/diversified semis portfolio and significant FCF potential. Reiterate Outperform with a new $240 target.