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Research Alert: CFRA Maintains Buy Opinion On Shares Of Broadcom
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Broadcom
Jun 6, 2025 5:43 AM

08:15 AM EDT, 06/06/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price to $290 from $235, utilizing a P/E of 29x but shifting a year out to our CY 27 EPS estimate of $10 given the improved visibility/demand that we now see tied to AI opportunities and software exposure ahead. After posting Apr-Q results and guidance that were relatively in line with our views, we adjust our FY 25 (Oct.) EPS estimate to $6.65 from $6.59 and FY 26 to $8.13 from $7.78. We start FY 27 at $9.82. We think the biggest takeaway from AVGO's earnings call is the faster than expected growth that it is seeing in AI semis (annual run rate will exceed $20B in the Jul-Q; up from less than $10B six quarters ago) and belief that it will sustain about a 60% growth pace in AI semis through CY 26. Advancements on the networking side offers additional upside (Tomahawk 6 to ramp in CY 26 enables more accelerators within an AI cluster) while hyperscaler momentum (three current customers, four to ramp) and AI trends have the potential to drive an acceleration of XPU demand in 2H CY 26.

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