Will This Price Target Increase Help Avago Technologies (AVGO) Stock Today?

NEW YORK (TheStreet) -- Avago Technologies (AVGO) stock has had its price target increased to $80 from $70, UBS said Monday. In its report, the firm maintained a "buy" rating, noting with the integration of the LSI assets underway "we believe the earnings accretion is trending better than we previously forecast."

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Separately, 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, solid stock price performance, expanding profit margins, good cash flow from operations and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 24.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 35.55% and other important driving factors, this stock has surged by 105.60% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AVGO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for AVAGO TECHNOLOGIES LTD is rather high; currently it is at 58.92%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.53% is above that of the industry average.
  • Net operating cash flow has increased to $251.00 million or 31.41% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.25%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income increased by 39.8% when compared to the same quarter one year prior, rising from $113.00 million to $158.00 million.
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