Broadcom price target lowered to $210 from $220 at Citi

Citi analyst Christopher Danely lowered the firm’s price target on Broadcom (AVGO) to $210 from $220 and keeps a Buy rating on the shares. The firm now assumes a recession given it appears some of the tariffs, especially on China, will be in effect for “quite some time” and after having looked at multiple and EPS compression during previous downturns it says that it appears valuations for U.S. semiconductor stocks are “roughly in the middle of historic averages.” The firm, which notes it is cutting estimates for the group by an average of 20%, highlights that Analog Devices (ADI) and Texas Instruments (TXN) are two of the best historic performers in a downturn and “would expect that to occur again.”