Beyond The Numbers: 11 Analysts Discuss Broadcom Stock

In the preceding three months, 11 analysts have released ratings for Broadcom AVGO, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $255.73, a high estimate of $300.00, and a low estimate of $210.00. Marking an increase of 1.15%, the current average surpasses the previous average price target of $252.82.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Broadcom by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Vivek Arya |B of A Securities |Lowers |Buy | $240.00|$260.00 | |Christopher Danely |Citigroup |Lowers |Buy | $210.00|$220.00 | |Joseph Moore |Morgan Stanley |Raises |Overweight | $260.00|$246.00 | |William Stein |Truist Securities |Raises |Buy | $267.00|$260.00 | |Matthew Prisco |Cantor Fitzgerald |Maintains |Overweight | $300.00|$300.00 | |Vijay Rakesh |Mizuho |Lowers |Outperform | $250.00|$260.00 | |John Vinh |Keybanc |Raises |Overweight | $275.00|$260.00 | |Cody Acree |Benchmark |Maintains |Buy | $255.00|$255.00 | |Hans Mosesmann |Rosenblatt |Maintains |Buy | $250.00|$250.00 | |Joseph Moore |Morgan Stanley |Lowers |Overweight | $246.00|$265.00 | |Tom O'Malley |Barclays |Raises |Overweight | $260.00|$205.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Broadcom. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Broadcom compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Broadcom's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Broadcom's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Broadcom analyst ratings.

Unveiling the Story Behind Broadcom

Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.

A Deep Dive into Broadcom's Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3M period, Broadcom showcased positive performance, achieving a revenue growth rate of 24.71% as of 31 January, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 36.89%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Broadcom's ROE excels beyond industry benchmarks, reaching 8.01%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Broadcom's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 3.33%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Broadcom's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.95, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.