Barclays Maintains its Rating and PT for Avago Technologies

According to a Barclays report it has maintained its Overweight rating of Avago Technologies

while reiterating its price target of $43. Barclays writes "CQ3 Guidance Soft, But Wireless Strong as Expected: Revenue was guided +0-3% Q/Q ($606-624M) vs. $635M Street. Wireless guided +20-30% Q/Q as the iPhone 5 ramps into production (~$3.00 in content). Auto & Industrial revenue is expected down mid/high single-digits after a strong CQ2 and soft demand environment. Wired is expected to decline high single-digits Q/Q due to softer Optical (core routing) with Consumer & Computer $30M lower Q/Q as the business transitions to a royalty. GMs are expected to be roughly flat at 51.25% (worse than our estimate due to lower proprietary optical) with slightly better opex Q/Q ($137M) yielding EPS of $0.68-0.69 vs. $0.70 Street." Avago Technologies traded around $36 Friday.