Broadcom (AVGO) shares experienced a boost in premarket trading on Thursday following a price target increase from Rosenblatt Securities. The tech company’s momentum in artificial intelligence was a key factor in the decision to raise the price target. Analyst Hans Mosesmann highlighted the growth in AI-related infrastructure networks and the application-specific integrated circuit business as contributing to the positive outlook. Additionally, Mosesmann noted synergies in enterprise software as a particularly encouraging development.
Rosenblatt Securities raised Broadcom’s price target from $1,650 to $2,400 and maintained a buy rating on the stock. Looking ahead to fiscal 2026, Mosesmann predicted that Broadcom would continue to see sales growth in the range of 15% to 19%. He also projected that the company could earn $75 per share on an adjusted basis, before the upcoming 10-for-1 stock split announced by Broadcom on June 12. The split is set to take place after markets close on July 12.
Overall, the outlook for Broadcom appears positive, with continued growth expected in the AI sector and in application-specific integrated circuits. The company’s focus on enterprise software and infrastructure networks is seen as a driving force behind its projected sales growth in the coming years. Investors reacted positively to the news of the price target increase, with shares rising in premarket trading as a result.
In conclusion, analysts at Rosenblatt Securities are optimistic about Broadcom’s future prospects, particularly in the AI space. The price target increase reflects confidence in the company’s ability to capitalize on the growing demand for AI-related technologies. With a buy rating and a higher price target in place, Broadcom is well-positioned to continue its upward trajectory in the tech sector.
Article Source
https://seekingalpha.com/news/4123560-broadcom-gains-as-rosenblatt-bumps-price-target-amid-ai-strength
