Bank of America has adjusted its price target for Broadcom (AVGO, Financial), reducing it from $260 to $240, while maintaining a Buy rating on the stock. This revision comes as the firm reassesses its outlook for U.S. semiconductor companies, suggesting that initial forecasts for the first quarter may have been conservative. As a result, the company's earnings preview indicates that recent tariff-related shifts have potentially improved the demand environment.
Despite this optimistic near-term view, Bank of America outlined the potential impacts of tariff scenarios on the semiconductor sector. In a situation of moderate tariffs, firms could see a 4% to 6% hit on sales. More severe tariff conditions could result in sales declines of 9% to 12% during 2025 and 2026. Moreover, projected earnings per share (EPS) might decrease by 12% to 13% under moderate tariff conditions.
The adjustments in Broadcom’s price target and the broader sector coverage reflect growing uncertainty in the market, as tariffs pose a significant risk to future sales and earnings. These predictions highlight the challenges semiconductor companies may face if trade tensions escalate further.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 34 analysts, the average target price for Broadcom Inc (AVGO, Financial) is $236.89 with a high estimate of $300.00 and a low estimate of $171.60. The average target implies an upside of 32.38% from the current price of $178.95. More detailed estimate data can be found on the Broadcom Inc (AVGO) Forecast page.
Based on the consensus recommendation from 40 brokerage firms, Broadcom Inc's (AVGO, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Broadcom Inc (AVGO, Financial) in one year is $146.60, suggesting a downside of 18.08% from the current price of $178.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Broadcom Inc (AVGO) Summary page.
