Robert W. Baird analyst Tristan Gerra has reiterated their bullish stance on AVGO stock, giving a Buy rating yesterday.
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Tristan Gerra has given his Buy rating due to a combination of factors, primarily focusing on Broadcom’s robust AI revenue growth and substantial order backlog. The company has secured significant orders, including an $11 billion order from Anthropic and a $1 billion order for XPUs, indicating strong demand for its AI capabilities. Additionally, Broadcom’s AI-related orders have surpassed $73 billion, showcasing its leadership in the AI sector.
Furthermore, Broadcom’s financial performance supports the Buy rating, with a notable increase in non-GAAP revenue and gross margins exceeding expectations. The company’s guidance for the upcoming quarter also reflects optimism, with revenue projections surpassing previous estimates. This strong financial outlook, combined with a growing software bookings backlog, underscores Broadcom’s potential for continued growth, justifying the positive rating.
Gerra covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Intel, and Micron. According to TipRanks, Gerra has an average return of 15.5% and a 56.40% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $450.00 price target.