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Actionable news in BRCM: Broadcom Corporation,

Big Analyst Upside Remains in Avago For Its Broadcom Buyout

How much upside in an analyst call is enough to entice investors? That is a key question that any investor needs to ask when it comes to chasing Wall Street research reports. If it is a Dow Jones Industrial Average or S&P 500 Index stock, the implied upside in most “Buy” and “Outperform” ratings from traditional brokerage firms is currently between 8% to 15% in implied upside. Then there are dividends to consider, as well as market conditions.

And now there is the case around Avago Technologies Limited (NASDAQ: AVGO), along with its pending acquisition of Broadcom Corp. (NASDAQ: BRCM). Two refreshed research reports from Canaccord Genuity are pointing to well above average upside in Avago. That upside may be more limited in Broadcom, but that is because Broadcom is being acquired.

Avago Technologies was reiterated as Buy by Canaccord Genuity analyst Michael Walkley. His price target of $165.00, which is upside of close to 35% from the prior $123.61 closing price. He has adjusted his estimates after solid Broadcom results, noting that the long-term positive thesis remains in place.

24/7 Wall St. would point out that Avago’s shares have been far higher than the current share price. With the price currently around $121, the 52-week range is $81.18 to $150.50. The consensus analyst price target is up at almost $163.00, and the highest analyst price target appears to still be up as high as $185.00. All in all, this means that even a very bullish upside call for 35% or...


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