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UPDATE: Morgan Stanley Reiterates On Avago Technologies Ltd. On Positive Outlook

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In a report published Friday, Morgan Stanley analyst Craig Hettenbach reiterated an Overweight rating on Avago Technologies Ltd. (NASDAQ: AVGO), and raised the price target from $82.00 to $97.00.

In the report, Morgan Stanley noted, “We remain Overweight AVGO as the company's above-average growth, strong FCF, diversified revenue stream (after LSI), and consistently high profitability is not reflected in the current multiple (P/E of 13x pro-forma 2015 EPS for the combined company). We have high conviction in management's ability to execute on driving LSI's OMs from 17% to 30% over the next few years. Notably, Avago doubled its OMs from 15% to 30% post the company's LBO and is very effective at maximizing pricing for its IP, which we think will benefit the LSI business.”

Avago Technologies Ltd. closed on Thursday at $76.36.

Latest Ratings for AVGO

DateFirmActionFromTo
Sep 2016SusquehannaInitiates Coverage onPositive
Sep 2016NomuraMaintainsBuy
Sep 2016Argus ResearchMaintainsBuy

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Posted-In: Craig Hettenbach Morgan StanleyAnalyst Color Price Target Analyst Ratings

 

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