In anticipation of upcoming first-quarter earnings, Barclays has recalibrated its outlook for Broadcom (AVGO, Financial) by lowering the price target for the company's shares from $260 to $215. Despite this adjustment, the firm continues to maintain an Overweight rating on the stock.
The decision to revise the price target stems from a comprehensive update to Barclays' semiconductor and semiconductor capital equipment models. This update accounts for the potential impact of tariffs and ongoing trade tensions, which have influenced expectations for the sector.
Furthermore, in light of perceived risks associated with China and consumer markets, the analyst has reduced target multiples, reflecting a more cautious stance in the face of these challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 34 analysts, the average target price for Broadcom Inc (AVGO, Financial) is $235.56 with a high estimate of $300.00 and a low estimate of $171.60. The average target implies an upside of 41.73% from the current price of $166.21. More detailed estimate data can be found on the Broadcom Inc (AVGO) Forecast page.
Based on the consensus recommendation from 40 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 $146.40, suggesting a downside of 11.92% from the current price of $166.21. 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.
