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

JHVEPhoto
- 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.