Avago Technologies (AVGO) Stock Coverage Initiated at Drexel Hamilton

NEW YORK (TheStreet) -- Avago Technologies (AVGO) stock coverage was initiated at Drexel Hamilton with a "buy" rating and a price target of $180. The company makes semiconductors for the cellular, automotive and defense industries.

The analyst action comes after the company recently reported strong second quarter results this year. It reported revenue of $1.645 billion, or $2.13 per share, compared to revenue of $701 million, or 85 cents per share in the same quarter a year ago.

The company's revenue for the quarter was up 134.7% compared to the same quarter last year.

The Singapore-based company also beat analyst estimates. It was expected to report revenue of $1.635 billion, or $2.01 per share, according to analysts surveyed by Thomson Reuters.

Additionally, the company recently announced that it will acquire wireless chipmaker Broadcom (BRCM) for $37 billion, in the biggest technology acquisition ever, according to Bloomberg.

In Tuesday's mid-day trading session, shares of Avago Technologies are dropping 1.87% to $143.87.

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, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel its 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."

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