UPDATE: Goldman Sachs Upgrades Avago Technologies on Confidence in Further Outperformance
In a report published Friday, Goldman Sachs analyst James Schneider upgraded the rating on Avago Technologies Ltd. (NASDAQ: AVGO) from Buy to Conviction List-Buy, and raised the price target from $48.00 to $54.00.
In the report, Goldman Sachs noted, “We are adding Avago to the Americas Conviction List. Despite the stock's strong performance YTD, three things give us confidence in further outperformance: 1) Avago's multi-year product cycle tied to global LTE penetration, as we see Avago's wireless segment growing 15% - 20% over the next two years as LTE penetration moves from 6% of global subscribers to as much as 20%; 2) continued dividend increases, with room to increase the yield to between 2.5% and 4.5%; 3) long-term management alignment with shareholder value, given CEO Hock Tan's new stock comp package, which vests with the stock between $50 and $75 (14% - 71% upside).”
Avago Technologies Ltd. closed on Thursday at $45.10.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.