FMP
Melius Recommends Broadcom with Buy Rating and $1,850 Price Target
Jun 3, 2024 4:44 PM - Davit Kirakosyan
Image credit: FMP
Melius analysts initiated coverage on Broadcom (NASDAQ:AVGO) with a Buy rating and a price target of $1,850 on the stock.
The analysts highlighted Broadcom as a key AI stock due to its leadership as a fabless semiconductor provider in various categories. They emphasized that the company's Networking division, which constitutes 30% of its revenues, is expected to benefit significantly from AI accelerators (XPUs) and networking chips, primarily sold to consumer internet companies. Additionally, 40% of Broadcom's revenue comes from more stable software streams, with VMware—recently acquired and accounting for about 60% of software sales—showing a positive shift towards subscriptions and its virtual private cloud (VCF).
Other Blogs
Oct 31, 2023 8:03 AM - Parth Sanghvi
FCFF vs FCFE: What's the Difference?
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...
