Avago Technologies Upped at Brean Capital

Avago Technologies

price target was raised at Brean Capital this morning from $87 to $105, based on the expectations of a solid earnings report tomorrow and a guide above street estimates based on mobile strength. Analyst Mike Burton goes on to say: "While the name is up nearly 30% since our upgrade, we believe AVGO still has room for another 15-20% of appreciation. We continue to see strength in the Apple ramp near-term, and we have upbeat expectations for 4G in China and Emerging Markets in 2015.AVGO, in our opinion, is a well-managed and diversified growth story positioned to benefit from theworldwide 4G ramp with its proprietary FBAR technology, supplemented by growth in Wired Infrastructure,and anchored with strong cash generation from its Industrial and Enterprise Storage segments. We are updating our target price to $105 from $87, representing a P/E level of 15.0x our CY16 EPS of $7.01, an unwarranted discount to its Analog comps trading at 16.0x forward earnings." Shares of AVGO closed at 90.95, implying 17.64% upside in the stock based on the $107 price target.