06:55 AM EST, 03/08/2024 (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 bump our 12-month target to $1,600 from $1,500 on a P/E of 28.1x our CY 25 EPS view, above historical given accelerating growth/exposure to software and AI revenue. We keep our FY 24 (Oct.) EPS at $49.16 and FY 25 at $56.90. AVGO posts Jan-Q EPS of $10.99 vs. $10.33, beating the $10.42 consensus. Sales rose 34% (+11% ex. VMware), with Infrastructure Software +153% and Semiconductor Solutions +4%. Software bookings tripled seq. to $1.8B (seen rising to $3B in Apr-Q), on success in upgrading customers to its higher value VMware Cloud Foundation offering. We think AI semi momentum remains strong (quadrupled Y/Y), driven by its Ethernet and customer silicon businesses (combined $10B in FY 24 at 70-30 split), and more than offsetting protracted enterprise and telco softness. Despite in line guidance for FY 24, higher quality AI revenue is set to exceed 35% of FY 24 semi sales (vs. 25% prior view) while momentum in VMware is trending favorably. We like potential margin/FCF expansion and emphasis on reducing debt.