Market Overview

UPDATE: Goldman Sachs Upgrades Avago Technologies on Confidence in Further Outperformance

Related AVGO
Sign Of Life In Semiconductor Sector, But Still Down From Last Week
Benzinga's Volume Movers
Making Money With Charles Payne: 09/25/14 (Fox Business)

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.

Latest Ratings for AVGO

DateFirmActionFromTo
Oct 2014Brean CapitalUpgradesHoldBuy
Oct 2014Canaccord GenuityMaintainsBuy
Sep 2014NomuraMaintains

View More Analyst Ratings for AVGO
View the Latest Analyst Ratings

Posted-In: Goldman Sachs James SchneiderAnalyst Color Upgrades Analyst Ratings

 

Related Articles (AVGO)

Around the Web, We're Loving...

Get Benzinga's Newsletters