Flickr/Gareth Halfacree

Broadcom (AVGO - Get Report) reported mixed quarterly earnings Thursday after the closing bell, but analysts raised their estimates even though management said demand for its chips will likely remain at a bottom for some time. 

Broadcom shares were down 3.3% to $290.74 on Friday late morning.

Adjusted earnings per share for Broadcom's fiscal third quarter came in at $5.16, beating Wall Street estimates of $5.13, while GAAP EPS beat expectations handily, coming in at $1.71, versus forecasts of $1.21. Revenue was $5.515 billion, just missing analysts expectations of $5.516 billion. Revenue rose 9% over the same period last year.
a share on Friday morning. 

Management guided for full fiscal year 2019 revenue of $22.5 billion, unchanged from its prior forecast. That figure was slightly below analyst estimates of $22.6 billion. The company expects its adjusted operating margin to be 52.5% for the year, also unchanged. The company maintained its capital expenditure guidance for the year of $500 million.

In a press release, Broadcom wrote that its semiconductor solutions revenue had "bottomed out but will continue to remain at these levels due to the current uncertain environment."

Still, more than 10 sell-side analysts raised their price targets on the stock. 

Here's what the analysts said: 

Goldman Sachs, Neutral, Price Target Increased From $290 to $311

"Idiosyncratic growth drivers (i.e. switching/routing product cycle, WiFi 6 adoption, 5G-driven RF content growth) and an improvement in the cloud end-market bodes well for the company's 2020 growth outlook, and the company continues to execute on margins, returns, and free cash flow. Consistent with management's previous comments, Broadcom intends to shift its focus away from share repurchases to rapid debt pay down given the risks associated with a levered balance sheet in periods of heightened macro uncertainty and the company's focus on maintaining its investment grade status." 

Toshiya Hari

Alliance Bernstein, Outperform, Price Target Increased From $300 to $340

"The continued conservatism is yielding a core business that appears at least somewhat de-risked, with drivers that still appear solid amid stellar execution. Additionally, there are a number of potential idiosyncratic elements here, including solid margin improvement, content gains in wireless, initial early success with the software strategy, Symantec acting as a further tailwind to numbers upon close, and a dividend that could be approaching $13 a share next year. In the sector we continue to prefer names that have easier numbers and valuation support; Broadcom continues to fit the bill on both." 

Stacy Rasgon 

CFRA, Buy, Price Target Increased From $322 to $341

"We like improving demand for switching/routing platforms and custom ASICs but note storage/broadband softness. Despite wireless strength, we see rising risk in the Jan-Q quarter given a likely lackluster iPhone 11 cycle and customer inventory build ahead of potential tariff hikes. Enterprise and mainframe software demand is exceeding our view."

- Angelo Zino

Morgan Stanley, Equal-Weight, Price Target Raised From $250 to $265

"We are lowering our estimates, in part reflecting the removal of stock buybacks which Broadcom is ceasing and instead focusing on deleveraging the balance sheet. Our new price target of $265 is based on a price-to-earnings multiple of 13 times on calendar year 2020, representing a 1.5 times turn increase to account for the current depressed level of business at Huawei. Morgan Stanley is acting as a financial advisor to Broadcom in relation to the proposed acquisition of the enterprise security business of Symantec Corporation, as announced August 8, 2019." 

- Joseph Moore