Broadcom's Rating Upgraded to Buy by TD Cowen Analyst Matthew Ramsay

TD Cowen's Matthew Ramsay upgraded their rating on Broadcom (NASDAQ: AVGO) from Hold to Buy on 2024/03/21. The analyst also raised their price target by 7.1% from $1,400 to $1,500.

Ramsay's decision to upgrade Broadcom's rating came after a careful evaluation of the company's presentation at its 2024/03/20 Enabling AI in Infrastructure Investor meeting. The analyst highlighted the potential benefits that Broadcom could gain from its bespoke silicon, back-end AI networking, and VMWare integration synergies.

In addition, Ramsay assured investors that Broadcom's non-AI semiconductor market forecasts already take into account seasonal fluctuations. Despite the recent surge in Broadcom's stock price, the analyst expressed optimism about the company's ability to sustain and diversify its development trajectory in AI computing/networking and software. Ramsay also believed that Broadcom has the potential to exceed consensus projections.

Furthermore, on the same day, Ramsay raised their price target on Nvidia Corp by 22.2%, from $900 to $1,100, while maintaining their Buy rating.

Currently, 100% of top-rated analysts consider AVGO as a Strong Buy or Buy. There are no analysts who see it as a Hold, and none recommend or strongly recommend selling the stock.

Analysts' consensus forecast suggests that AVGO's upcoming year will deliver earnings per share (EPS) of $37.3. If these predictions hold true, AVGO's next yearly EPS will increase by 34.1% on a year-over-year basis.

In terms of stock performance, AVGO has shown positive growth. Since the last quarterly report on 2024/02/04, the stock price has risen by 10.1%. Looking at the year-over-year performance, AVGO has surged by 111.7%, outpacing the S&P 500, which has only risen by 30.9% during the same period.

Matthew Ramsay, the TD Cowen analyst behind the upgrade, is ranked in the top 9% out of 4,518 Wall Street analysts by WallStreetZen. Ramsay specializes in the Industrials and Technology sectors and boasts an average return of 17.6% with a 48.8% win rate.

Broadcom Inc., the subject of Ramsay's rating upgrade, is a global company that designs, develops, and supplies various semiconductor devices. The company focuses on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. Broadcom operates in two segments: Semiconductor Solutions and Infrastructure Software. They offer a wide range of products used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, and electronic displays. Broadcom Inc. was incorporated in 2018 and is headquartered in San Jose, California.

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