Market Overview

Morgan Stanley Sees Avago Technologies Q1 Beat; New Markets For Sensata Technologies?


Avago Technologies Ltd (NASDAQ: AVGO) could beat the first quarter consensus by a small margin on strong demand for data storage products and wired infrastructure, an analyst said Monday

Morgan Stanley's Joseph Moore maintained an Overweight rating and $126 target on the chip maker slated to post results Wednesday, citing prospects for "above average" growth.

Also Monday, Moore reiterated his Equal-weight rating on Sensata Technologies Holding N.V. (NYSE: ST) and Underweight ON Semiconductor Corp (NASDAQ: ONNN), with both companies slated to host analyst conferences later this week.

Regarding Avago, Moore said investors are eager to hear the company's April outlook in light of sequential declines in iPhone sales, which is likely to be only partly offset by Samsung's ramp-up of its Galaxy S6 phone.

Avago closed at $112.85, up 0.7 percent.

Separately, Sensata Technologies gained about 2.7 percent Monday to a year-high ahead of its first "analysts day" in nearly four years Tuesday at its offices in Attleboro, Massachusetts.

Investors are most focused on Sensata's automotive business, but Moore expects the company to offer insight into its business potential in industrial markets.

Sensata shares are up more than 10 percent since November, and Moore maintained an Equa-lweight rating, citing its relatively rich valuation.

ON Semiconductor is planning a similar event with analysts Thursday at its Phoenix headquarters, although its shares recently were nearly unchanged at $12.01.

ON shares are up nearly 40 percent in the past three months, but Moore maintained an Underweight rating on "slower organic growth."

Latest Ratings for AVGO

Aug 2019MaintainsOverweight
Jul 2019Initiates Coverage OnOutperform
Jun 2019MaintainsOutperform

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Posted-In: Joseph Moore Morgan StanleyAnalyst Color Price Target Reiteration Analyst Ratings


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