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

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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
Jul 2015BMO CapitalInitiates Coverage onOutperform
Jun 2015Argus ResearchInitiates Coverage onBuy
Jun 2015Drexel HamiltonInitiates Coverage onBuy

View More Analyst Ratings for AVGO
View the Latest Analyst Ratings

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

 

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