Broadcom Inc. (AVGO, Financial), a leading semiconductor manufacturer, has been experiencing a banner year. Shares have rallied 8.5% over the past 30 days. Over the last six months, the stock has climbed 32%, marking a 62.7% increase year-to-date.
In July, Broadcom announced a $5 billion bond deal with JPMorgan, TD Bank, and Truist Securities to reduce debt from its $69 billion acquisition of VMware completed in November 2023. On October 2, the company issued additional notes to further manage its debt load.
As a result, Broadcom adjusted its long-term guidance, projecting earnings per share (EPS) of $6.50 for 2025, slightly up from the previous estimate of $6.47. This financial tweak has caught the attention of Wall Street analysts ahead of the company's next earnings call on December 5.
Analysts from major firms have revised their price targets and ratings for AVGO. Vivek Arya of Bank of America maintained a "Buy" rating, raising the price target to $215. Arya noted Broadcom's shift from a value stock to a growth stock, driven by accelerating AI contributions and the VMware acquisition. DBS analyst Fang Boon Foo also upheld a "Buy" rating, increasing the target price from $204 to $205. Similarly, William Stein of Truist Securities kept a "Buy" recommendation with a $205 target.
Mizuho Securities made a significant upward revision, reiterating an "Outperform" rating and boosting the price target from $190 to $220. Cantor Fitzgerald's CJ Muse raised the price target to $225 from $200, reaffirming a "Buy" rating and highlighting Broadcom's strong position in the AI sector.
Of 27 analysts covering the stock, 24 rate it as a "Buy" and three as a "Hold." The average price target is $199.57, indicating a potential 9.97% upside. While the outlook remains optimistic, investors closely watch the upcoming earnings report for further insights.
