Broadcom price target raised to $500 from $460 at BofA

BofA analyst Vivek Arya raised the firm’s price target on Broadcom (AVGO) to $500 from $460 and keeps a Buy rating on the shares. The stock sold-off post-market, which the firm views as perhaps due to some “undue concerns” around backlog given the bull-case expectation of $73B and growing AI backlog versus consensus at $69B over the next six quarters and some bull-case expectations that could have been over $80B, the analyst tells investors. However, the firm says backlog and order visibility continues to build and management commentary suggests $50B and $100B in AI sales is possible in FY26 and FY27, respectively, inline with pre-call bull-case. Following the report, the firm raised FY26 and FY27 pro-forma EPS estimates by 8% each to $10.33 and $14.40, respectively.