Piper Sandler analyst Harsh Kumar reiterates an Overweight rating on Broadcom (AVGO) with a $750 price target following reports that the company is in advanced talks to acquire VMware (VMW). When including cost cuts, the earnings accretion is “quite impressive and much larger than we initially expected,” Kumar tells investors in a research note. He believes a deal could be between ~$12.25 and ~$13.75 accretive to earnings per share once cost cuts are fully in place. “By all metrics, the potential acquisition of VMware makes perfect sense in our eyes,” Kumar writes.
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