RBC Capital Starts Avago Technologies (AVGO) at Outperform - InvestingChannel

RBC Capital Starts Avago Technologies (AVGO) at Outperform

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Rating Summary:

14 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today’s Overall Ratings:

Up: 16 | Down: 24 | New: 21

After the close, RBC Capital is initiating coverage on Avago Technologies (NASDAQ: AVGO) with an Outperform rating and $41 price target.

Analyst Doug Doug Freedman comments, “Avago Technologies is a play on the 3G and LTE build-out on both the wireless and wired infrastructure side. Our expectation that Avago’s revenue can grow at twice the market’s rate is supported by three key factors: 1) strong IP in core technologies that enable performance advantages over peers, 2) exposure to secular trends supporting the need for LTE rollout and data demands, and 3) share gains in the wired marketplace on SerDes and optical solutions. With a rapidly growing cash position, zero-debt balance sheet and growth profile, Avago’s valuation is compelling, trading at a discount to our coverage list and wireless peer group on a p/e and PEG basis.”

For an analyst ratings summary and ratings history on Avago Technologies click here. For more ratings news on Avago Technologies click here.

Shares of Avago Technologies closed at $34.44 yesterday, with a 52 week range of $29.70-$39.22.

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