Credit Suisse Reiterates Outperform, Raises Price Target On Avago Technologies On Expected Further Stability

In a report published Thursday, Credit Suisse analyst John W. Pitzer reiterated an Outperform rating on Avago Technologies Ltd. (NASDAQ: AVGO), and raised the price target from $125.00 to $140.00.In the report, Credit Suisse noted, "Avago is an established supplier of analog-rich semiconductor products, many of them incorporating proprietary technologies, and serves a diverse set of end markets, often as a sole supplier. Since its LBO in 2005, the company has rationalized its product portfolio through divestitures and streamlined its operations by outsourcing back-end and bulk CMOS front-end processing, retaining front-end processing fabs for specialty materials and proprietary technologies.The note also said, "Avago's leverage to structural growth drivers including content increases in the Industrials/autos end-mkts and accelerating demand for bandwidth, as well as, product cycles (4G/LTE wireless ramps at Apple and China) should allow the company to outperform peers. The additional revenue streams and end market diversification from the LSI acquisition should add further stability to the combined company."Avago Technologies closed on Wednesday at $112.68.