Semiconductor company Broadcom (AVGO) is "one of the best-positioned suppliers to benefit" from the upcoming release of the highly-anticipated Apple (AAPL) iPhone 8, KeyBanc analyst John Vinh contended.
Vinh reiterated his "Overweight" rating on Broadcom with a $280 price target. Shares of the company were lower over 1% during Monday morning trading despite the bullish call.
But, the next iteration of the iPhone will boast more Broadcom chips than in past models, which should offset other weaknesses in storage and "wired infrastructure," Vinh wrote in a note obtained by Barron's.
His call comes just days before Broadcom will report its third quarter earnings this Thursday. Vinh is expecting Broadcom to report $4.46 billion in revenue and $4.03 per share in earnings, in line with consensus.
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