On Tuesday, analysts at Morgan Stanley raised the price target on shares of Avago Technologies Ltd. AVGO from $90 to $96 and maintained the Overweight rating.
Craig Hettenbach outlined reasons for the price target increase.
Increasing estimates to reflect better than expected growth in wireless and higher margins. Hettenbach finds the increase in iphone 6 sales and momentum in wireless will provide increased sales.
TAM expansion and accelerating growth in RF. Hettenbach stated, “we think Avago is uniquely positioned to benefit from growth in the low-end end segment given its strong leadership position in premium filters. Overall we estimate the TAM for premium filters to grow at a 40% CAGR over the 2013-2015 period, ~2X the growth for the overall RF market”
New technology will also provide growth, Hettenbach finds rising penetration of technologies such as carrier aggregation and envelope tracking is providing incremental tailwinds for growth at Avago.
Shares of Avago recently traded at $91.44 up 0.33 percent.
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