Citi analyst Christopher Danely has revised the firm's price target for Broadcom (AVGO, Financial), decreasing it from $220 to $210 while maintaining a Buy rating on the stock. This adjustment comes as the firm anticipates a potential recession, with the expectation that certain tariffs, notably those involving China, will persist for an extended period.
In light of previous economic downturns, Citi has analyzed multiples and earnings per share (EPS) compressions, concluding that valuations for U.S. semiconductor stocks currently sit around the middle of historical averages. As a result, the firm has decided to reduce its estimates for the semiconductor sector by an average of 20%.
Citi also emphasizes Analog Devices (ADI) and Texas Instruments (TXN) as historically resilient performers during economic slowdowns, suggesting these companies are likely to continue performing well under similar circumstances. This assessment highlights the shifting landscape in the semiconductor industry amid ongoing trade challenges and economic uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 33 analysts, the average target price for Broadcom Inc (AVGO, Financial) is $240.37 with a high estimate of $300.00 and a low estimate of $171.60. The average target implies an upside of 39.51% from the current price of $172.30. More detailed estimate data can be found on the Broadcom Inc (AVGO) Forecast page.
Based on the consensus recommendation from 39 brokerage firms, Broadcom Inc's (AVGO, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Broadcom Inc (AVGO, Financial) in one year is $146.60, suggesting a downside of 14.92% from the current price of $172.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Broadcom Inc (AVGO) Summary page.
