Broadcom (AVGO) has seen significant growth since going public in 2009, with technology stocks providing returns of about 10,000% over 15 years. Adjusted for dividend reinvestments, this profitability increases to 14,000%. With a market capitalization of $772 billion, the stock is currently trading at $1,608 per share and analysts predict that it could reach $2,000 per share. JPMorgan is bullish on Broadcom, highlighting its dominance in markets such as data centers and AI Ethernet switching, with a valuation between $5 billion and $7 billion. The company’s investment in research and development is expected to create barriers to entry for competitors and drive growth in the coming years. JPMorgan analyst Harlan Sur has a target price of $2,000 for AVGO stock, indicating potential upside of almost 30% from current levels. However, Broadcom has announced a 10-for-1 stock split that will reduce the share price to $160.80 but keep the overall valuation unchanged.
Broadcom’s performance in recent years has been impressive, with acquisitions like Avago Tech, CA Technologies, Symantec, and VMware contributing to its growth. In the fiscal second quarter of 2024, the company reported a 43% increase in sales to $12.49 billion, with a strong organic growth rate of 12%. Broadcom aims to increase its software sales and reduce reliance on the semiconductor business over time. Analysts expect continued growth in earnings and sales, with estimated earnings growth of 12% in fiscal 2024 and 26% in fiscal 2025. Despite its size, AVGO stock is considered reasonably priced at 28 times next year’s earnings.
Of the 30 analysts covering AVGO stock, 27 recommend a “strong buy” and three recommend a “hold.” The average price target for AVGO stock is $1,813.23, representing a 12.8% increase from the current trading price. The high target price is $2,100, a premium of approximately 30%. This information is for informational purposes only and does not constitute investment advice.
Article Source
https://www.nasdaq.com/articles/can-broadcom-stock-hit-2000-share
