Broadcom Limited (AVGO) PT Raised to $545 at Mizuho Securities

Mizuho Securities analyst Vijay Rakesh raised the price target on Broadcom Limited (NASDAQ: AVGO) to $545.00 (from $520.00) while maintaining a Buy rating.

The analyst commented, "AVGO reported an in-line JulQ and guided to a OctQ at $7.4B (consensus $7.2B), with GMs we estimate at 74.9%. AVGO noted tailwinds, with hyperscalers transitioning to 800G with Trident Tomahawk 4 and 100G SerDes.

AVGO reported OctQ Wireless growing 33% q/q, Enterprise up ~15% q/q highlighting a stronger Enterprise recovery into F22, BUT Industrial down ~10-11% q/q. AVGO noted lead times "stable" with inventory up 16% q/q to position for OctQ ramps, and stated it was monitoring demand to avoid building excess inventory.

With industry-leading GM/OM at ~75%/58% and FCF/year $13B+, we reiterate our Buy, raise estimates, and PT to $545 (from $520), with AVGO noting its hunt for M&A."

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