UPDATE: Noting Limited Upside In Current Price, D.A. Davidson & Co. Downgrades Avago Technologies
In a note issued Friday, D.A. Davidson & Co. Downgraded Avago Technologies (NASDAQ: AVGO) from Buy to Neutral, Despite increasing the price target from $60 to $64.
D.A. Davidson & Co.'s Thomas Diffely took the lead on the rating change of Avago Technologies this Friday. The big take away from Diffely's note is, although Avago is expected to nearly double revenues with the "very attractive" acquisition of LSI Corporation (NASDAQ: LSI), he believes this is already reflected in the stock price. In addition to this, Diffely remains skeptical that Avago will meet the consensus view on revenues for fiscal quarter one.
Diffely concluded the note saying, "We believe the risk-reward profile for the stock is fairly well balanced and are moving our rating from Buy to Neutral."
At last check, Avago is down almost 2 percent at $58.06.
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