UPDATE: Morgan Stanley Initiates Avago Technologies on Handset Content and Communication Upside

In a report published Tuesday, Morgan Stanley analyst Craig Hettenbach initiated coverage on Avago Technologies AVGO with a rating of Overweight and a $45 price target.

In the report, Morgan Stanley stated, “We expect Avago to beat estimates through the rest of the year, mostly based on higher dollar content in LTE phones. More so, with the stock underperforming the SOX and S&P by ~1500bps over one year on smartphone concerns, we anticipate catch-up performance as estimates rise.”

Avago Technologies closed on Monday at $37.61.