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

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The Vetr community has downgraded $AVGO to 3-Stars (Vetr)

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

Dec 2015SusquehannaInitiates Coverage onPositive
Nov 2015Drexel HamiltonInitiates Coverage onBuy
Sep 2015JMP SecuritiesUpgradesMarket PerformMarket Outperform

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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