- Broadcom (AVGO, Financial) is expected to report a 20% increase in revenue, driven by AI and custom ASIC demand.
- Analysts provide a mixed forecast, with a downside average target price from current levels.
- GuruFocus estimates suggest a significant potential downside based on the GF Value metric.
Broadcom's Promising Revenue Forecast
Broadcom (AVGO) is on track to surpass Wall Street's Q2 expectations with a forecasted revenue of $14.97 billion, reflecting a robust 20% year-over-year growth. This is despite an anticipated 85% drop in EPS to $1.57. Analysts attribute this revenue boost to the rising demand for AI and custom ASIC solutions, which are expected to drive the company's performance significantly. Notably, Broadcom shares have appreciated by over 11% this year, highlighting investor confidence.
Wall Street Analysts' Insight
Currently, 36 financial analysts have projected one-year price targets for Broadcom Inc (AVGO, Financial), with an average target price of $243.29. While the highest target stands at $301.15 and the lowest at $171.60, the average suggests a potential downside of 6.84% from the existing market price of $261.15. For more comprehensive estimate details, please visit the Broadcom Inc (AVGO) Forecast page.
Consensus Recommendation
Broadcom Inc (AVGO, Financial) holds a consensus recommendation score of 1.8 from 42 brokerage firms, indicating an "Outperform" rating. This scale ranges from 1, representing a Strong Buy, to 5, indicating a Sell. This consensus reflects a favorable outlook from industry analysts, who see potential for outperformance in the company's future.
Assessing Broadcom's GF Value
According to GuruFocus estimates, the GF Value for Broadcom Inc (AVGO, Financial) is pegged at $150.21 in a year's view, which suggests a significant downside of 42.48% from the current share price of $261.15. The GF Value represents GuruFocus' assessment of the fair value at which the stock should trade, derived from historical trading multiples, past business growth, and future performance predictions. For additional data, see the Broadcom Inc (AVGO) Summary page.
