Broadcom's Growth Drivers In Focus At Brean Capital

Brean Capital LLC analyzed the growth opportunities of Broadcom Ltd AVGO in a report out Thursday. Analyst Mike Burton highlighted his positive outlook concerning the future growth drivers in data center and wireless segments and the eagerness toward more acquisitions after conducting a meeting with Ashish Saran, Broadcom's director of investor relations.

Broadcom expressed certainty regarding the growth for FBAR filters demand in upcoming years. "Carrier Aggregation (CA) is changing the RF front-end architectures and, as a result of companies migrating to Quadplexers and Hexaplexers to solve the issues with CA, there are more stringent demand on filters covering bands that could've used SAW in the past," according to Burton.

Related Link: Nomura Upgrades Broadcom After Meeting With CEO

The analyst mentioned the above-average diversified growth, industry leading profitability, top quality management team and cheap valuation as the basis for Brean's bullish outlook.

Brean Capital restated its $190 target on Broadcom, which is based on estimated P/E of 13.5x and CY17 EPS of $14.12. The firm has a Buy rating on the stock.

At time of writing, the stock was up 1.26 percent on the day at $157.10.