Broadcom in focus as Citi reiterates Buy, ups target, ahead of Q4 results

Broadcom (NASDAQ:AVGO) was in focus on Tuesday as Citi reiterated its Buy rating and upped its price target on the semiconductor and software giant ahead of its fiscal fourth-quarter results, slated to be released after the close of trading on Thursday.
Shares were down fractionally in premarket trading.
“We expect the company to report results above consensus driven by a recovery in the non-AI semiconductor business (35% of F24E sales) with a better-than-feared gross margin outlook due to higher software mix,” analyst Christopher Danely wrote in a note to clients. “However, we believe F1Q25 guidance will be tempered as there appears to be a slowdown in orders from leading AI customer Google. We do expect business to ramp from Meta throughout C25 and pick up the slack.” Danely raised his price target to $205 from $175 ahead of the results.
A consensus of analysts expects Broadcom to earn $1.39 per share on $14.06B in revenue for the coming quarter.

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