Story updated at 9:45 a.m. to reflect market activity.
Shares of Avago gained 9.9% to $83.92 in morning trading.
The analyst firm also raised its EPS estimates for the chipmaker through 2015. Sterne Agee expects Avago to report earnings of $1.68 a share for the fourth quarter, up from its previous estimate of $1.25 a share for the quarter. The firm expects earnings of $4.63 a share for full-year 2014, and $7.30 a share for full-year 2015, up from $4.06 and $5.88, respectively.Avago has a lot of operating momentum according to Sterne Agee analysts. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. --------------- Separaetly, TheStreet Ratings team rates AVAGO TECHNOLOGIES LTD as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation: "We rate AVAGO TECHNOLOGIES LTD (AVGO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value." You can view the full analysis from the report here: AVGO Ratings Report AVGO data by YCharts EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts