Broadcom Inc. Stock Price Targets

Comprehensive analysis of short, mid, and long-term price targets for Broadcom Inc. (AVGO).

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Give me a comprehensive price target analysis for Broadcom Inc. (AVGO).

Below is a comprehensive, data-driven analysis for Broadcom Inc. (AVGO), incorporating the price targets you provided, recent earnings data, and the technical indicators you supplied. Also note that I have plotted horizontal lines on the price chart for the Low, Median, and High targets as requested.

Trendlines drawn (30 days forward)

  • Low Target (218.00): Blue
  • Median Target (375.00): Orange
  • High Target (420.00): Red

Trendline coordinates (for reference)

  • Low Target: Price 218.00 from 2025-10-07 to 2025-11-06 (AVGO)
  • Median Target: Price 375.00 from 2025-10-07 to 2025-11-06 (AVGO)
  • High Target: Price 420.00 from 2025-10-07 to 2025-11-06 (AVGO)

Executive Summary

  • Investment thesis: AVGO remains a leading, highly profitable supplier in the semiconductors/Data Center infrastructure space. The stock trades at a premium multiple, commensurate with its strong cash flow generation, pricing power, and diversified product portfolio. Near-term upside hinges on earnings execution and sustained demand in data-center and networking markets, while longer-term gains depend on continued margin stability and AI/data-center secular growth.
  • Price target context: The market consensus targets imply meaningful upside from today’s price if earnings revisions stay positive and the company maintains its above-average margins and cash generation. The three price targets you provided (218 Low, 375 Median, 420 High) form a broad but plausible upside path, with the Median targeting a modest-to-solid 11%+ uplift vs the current price around 335.

Fundamental Analysis

  • Key metrics (as given)
    • Market Cap: $1,584.31B
    • Enterprise Value: $168.45B
    • Trailing P/E: 86.24x
    • Forward P/E: 54.37x
    • Price-to-Book: 5.67x
    • Return on Equity (ROE): 27.08%
    • Return on Assets (ROA): 8.90%
    • Profit Margin: 31.59%
    • Gross Margin: 77.19%
    • Operating Margin: 31.77%
    • Debt-to-Equity: 166.0x
    • Total Cash: $11.11B
    • Total Debt: $40.46B
    • Dividend Yield: 0.70% (Five-year avg: 2.19%)
    • Beta: 1.21
  • Interpretation
    • AVGO delivers very high margins and solid cash generation, but carries substantial leverage (D/E) for a mature tech company; the current trailing multiple is expansive vs. market norms, reflecting its premium profile.
    • The cash balance is modest versus the debt load; debt management and interest coverage will be a key consideration in a rising-rate environment.
    • Dividend yield is currently below the five-year average, suggesting potential emphasis on buybacks or growth reinvestment rather than income.

Earnings Analysis Recent Earnings Summary (selected items from the provided quarterly data)

  • 2025-07-31
    • Total Revenue: $15.952B
    • EBITDA: $8.291B
    • Operating Income: $6.074B
    • Net Income (Continuing Operations): $4.140B
    • Diluted EPS: $0.85; Basic EPS: $0.88
    • Tax effect of unusual items: -$40.5M; Unusual Items: -$187M
  • 2025-04-30
    • Total Revenue: $15.004B
    • EBITDA: $8.026B
    • Operating Income: $5.915B
    • Net Income: $4.965B
    • Diluted EPS: $1.03; Basic EPS: $1.05
    • Tax rate calculations reflect unusual items of around -$86M
  • 2025-01-31
    • Total Revenue: $14.916B
    • EBITDA: $8.537B
    • Operating Income: $6.363B
    • Net Income: $5.503B
    • Diluted EPS: $1.14; Basic EPS: $1.17
  • 2024-10-31 and 2024-07-31 show solid mid-cycle results with margin stability and revenue growth continuing through 2024.
  • Observations
    • Revenue is rising quarter-over-quarter and year-over-year.
    • EBITDA and operating income are firm, pointing to healthy operating leverage.
    • Diluted EPS has shown some variability around recent quarters (1.03 in 4/30/2025 vs 0.85 in 7/31/2025), influenced by tax effects and unusual items in specific periods.
    • The tax rate and unusual items marginally affect quarterly profitability, but normalized earnings remain solid.

EPS Trend

  • 0q (latest quarter shown): 1.86732
  • +1q: 1.95849
  • 0y (last four quarters trailing): 6.73865
  • +1y (forward 1-year view): 9.22110 Table (selected values)
  • Period | Current | 7 days ago | 30 days ago | 60 days ago | 90 days ago
  • 0q | 1.86732 | 1.86732 | 1.86664 | 1.80528 | 1.80365
  • +1q | 1.95849 | 1.95849 | 1.94856 | 1.89136 | 1.87795
  • 0y | 6.73865 | 6.73865 | 6.74730 | 6.66282 | 6.62580
  • +1y | 9.22110 | 9.22692 | 9.06525 | 8.24327 | 8.17991

EPS Revisions

  • 0q
    • Up Last 7 Days: 0
    • Up Last 30 Days: 26
    • Down Last 30 Days: 3
    • Down Last 7 Days: 1
  • +1q
    • Up Last 7 Days: 19
    • Up Last 30 Days: 20
    • Down Last 30 Days: 4
    • Down Last 7 Days: 4
  • 0y
    • Up Last 7 Days: 1
    • Up Last 30 Days: 33
    • Down Last 30 Days: 1
    • Down Last 7 Days: 0
  • +1y
    • Up Last 7 Days: 3
    • Up Last 30 Days: 36
    • Down Last 30 Days: 0
    • Down Last 7 Days: 0 Interpretation
  • The revisions data show a healthy tilt toward upward revisions across multiple horizons, particularly the last year and 30-day windows, which supports a constructive earnings trajectory if the trend persists.

Technical Analysis

  • Current price action and moving averages
    • Current price: ~$335.49
    • 50-day Moving Average (recent): ~$315.8 (late September/early October value)
    • Current price is above the 50-day MA, indicating short-term bullishness; the 50-day MA is rising, suggesting a positive intermediate-term trend.
  • RSI (14-period)
    • Recent RSI values fluctuated in the mid-to-high range (60s-70s) historically, with a notable recent low near 24.0 on 2025-10-06, which appears anomalous relative to surrounding data and may indicate a data quirk or a very short-term oversold spike.
    • Most recent clean readings historically suggested moderate to strong momentum, with RSI often in the 60–80 range during uptrends.
  • MACD (12,26,9)
    • MACD values have recently shown a narrowing gap versus the Signal line; the latest data show MACD around 4.4 with a Signal around 6.9, which suggests a potential bearish cross or consolidation phase in the near term.
    • Prior to the latest print, MACD had been in positive territory with a strengthening trend, consistent with earlier up moves.
  • Key levels
    • Support: The 50-day MA around 316 provides near-term support; also, the trendline from higher timeframes remains supportive, albeit not explicitly provided in the data.
    • Resistance: The med/upper targets (375 and 420) act as visible resistance zones derived from your price targets.

Analyst Consensus & Price Targets

  • Current price: 335.49
  • Targets (Low/Median/High): 218.00 / 375.00 / 420.00
  • Number of analysts: 41
  • Target mean: 370.36
  • Interpretation
    • The Median target (375) sits about 12% above the current price, implying moderate upside in a 3–12 month horizon if execution remains strong.
    • The High target (420) signals a bullish upside scenario if the company achieves continued earnings strength and multiple expansion.
    • The Low target (218) represents a substantial downside risk if demand deteriorates, margins compress, or financial leverage becomes a hindrance.

Price Target Analysis (Short, Mid, Long-Term)

  • Short-Term (3 months): Target around 375 (median target)
    • Justification:
      • Positive analyst revisions, with multiple horizons showing upward revisions.
      • Quarterly revenue and EBITDA have shown steady growth, with margins holding relatively firm.
      • Near-term momentum could drive the stock toward the median target as earnings visibility improves.
    • Key drivers:
      • Sustained demand in data-center and networking segments.
      • Margins holding around historically high levels.
      • Ongoing capital discipline and potential buyback activity.
  • Mid-Term (12 months): Target around 420 (high target)
    • Justification:
      • If AVGO delivers continued above-consensus earnings growth and earnings surprises, multiple expansion could push the price toward the high target.
      • Revisions remain net-positive across horizons, which supports a bullish view.
    • Key drivers:
      • AI/data-center expansion and product mix improvements.
      • Durable gross and operating margins, supported by scale and pricing power.
      • Strategic product launches and potential M&A activity that could broaden addressable markets.
  • Long-Term (3+ years): Target range roughly 450–500 (bull-case)
    • Justification:
      • Beyond 12 months, sustained AI/datacenter demand, share repurchases, and continued margin stability could justify higher enterprise multiples if growth accelerates.
    • Key drivers:
      • Continued secular growth in semiconductors and data-center infrastructure.
      • Ongoing technology leadership and a robust ecosystem of products that command premium pricing.
      • Potential accelerants like new product cycles, platform-level adjacencies, and efficiency through scale.
    • Note: The above long-term range reflects a reasonable bull-case extension beyond the published 420 target, assuming earnings power and market multiples remain supportive.

Key Risks & Opportunities

  • Risks
    • High leverage (debt-to-equity) and sensitivity to interest rates could pressure earnings if financing costs rise.
    • Very high trailing P/E could imply multiple compression if growth slows or if margins deteriorate.
    • Sector cyclicality in semiconductors and sensitivity to global macro conditions (geopolitics, supply chain disruptions) could impact demand.
    • Competition from other leading semiconductor providers could compress market share and pricing power.
  • Opportunities
    • AI/data-center capex tailwinds support continued demand for Broadcom’s connectivity, storage, and networking components.
    • Strong free cash flow supports potential buybacks and mild leverage reductions over time.
    • Margin stability and potential efficiency gains from product mix optimization.

Investment Recommendation

  • Rating: Hold to Moderate Buy
  • Rationale:
    • AVGO trades at a premium due to robust profitability, cash flow generation, and market leadership in multiple product categories. The current price sits near the lower end of its near-term target range and well below the 12-month high scenario, implying upside risk-reward favorable to bulls if earnings revisions stay positive and demand remains robust.
    • Key near-term catalysts include continued revenue growth, healthy margins, and positive EPS revisions. The primary headwinds are macro risk, leverage concerns, and the potential for multiple compression if growth slows.
  • Expected return potential (12–24 months)
    • Base-case: ~10–15% upside toward the median target (around 375) if the current trajectory continues.
    • Bull-case: Up to 25–30% upside toward the high target (around 420) if earnings momentum strengthens and multiples expand.
    • Bear-case: Material downside risk exists if earnings flatten and leverage becomes a concern, potentially approaching the low target (218) if structural issues arise.
  • Suggested action
    • If you are seeking exposure to semiconductors/Data Center infrastructure with a premium but durable margin profile, consider a staged exposure approach (e.g., scale into a position on pullbacks toward the 50-day MA or on positive earnings revisions) and use the 375–420 range as milestones for adding or trimming.

Technical Indicators Overview (for quick reference)

  • 50-day MA: ~316 (price currently above, indicating short- to intermediate-term bullishness)
  • RSI (14): Historically oscillates high during uptrends; recent readings show volatility with a potential oversold signal in the latest print (data shows 24.0 on 2025-10-06; earlier values in the 60s–80s range)
  • MACD (12,26,9): Positive trend earlier, but the latest print shows MACD ≈ 4.4 vs Signal ≈ 6.9, suggesting potential near-term consolidation or a bearish cross risk; monitor for reversal signals

Tables: Key Data Points (selected)

  • Valuation and financials

    • Market Cap: $1,584.31B
    • Enterprise Value: $168.45B
    • Trailing P/E: 86.24x
    • Forward P/E: 54.37x
    • P/B: 5.67x
    • ROE: 27.08%
    • ROA: 8.89%
    • Profit Margin: 31.59%
    • Gross Margin: 77.19%
    • Operating Margin: 31.77%
    • Debt/Equity: 166.0x
    • Total Cash: $11.11B
    • Total Debt: $40.46B
    • Dividend Yield: 0.70%
    • 5-year avg Dividend Yield: 2.19%
    • Beta: 1.208

  • Analyst Targets

    • Current Price: $335.49
    • Target Low: $218.00
    • Target Median: $375.00
    • Target High: $420.00
    • Target Mean: $370.36
    • Number of Analysts: 41

  • Recent Earnings Snapshot (selected quarters)

    • 2025-07-31: Revenue $15.952B; EBITDA $8.291B; Operating $6.074B; Net Income $4.140B; Diluted EPS $0.85
    • 2025-04-30: Revenue $15.004B; EBITDA $8.026B; Operating $5.915B; Net Income $4.965B; Diluted EPS $1.03
    • 2025-01-31: Revenue $14.916B; EBITDA $8.537B; Operating $6.363B; Net Income $5.503B; Diluted EPS $1.14

  • EPS Trend (base view)

    • 0q: 1.86732
    • +1q: 1.95849
    • 0y: 6.73865
    • +1y: 9.22110

  • EPS Revisions (0q, +1q, 0y, +1y snapshots)

    • 0q: Up Last7d 0; Up Last30d 26; Down Last30d 3; Down Last7d 1
    • +1q: Up Last7d 19; Up Last30d 20; Down Last30d 4; Down Last7d 4
    • 0y: Up Last7d 1; Up Last30d 33; Down Last30d 1; Down Last7d 0
    • +1y: Up Last7d 3; Up Last30d 36; Down Last30d 0; Down Last7d 0

  • Technical Metrics (last 60 days)

    • 50-day MA series shows a rising trend, with the latest MA around 315–316
    • RSI readings have spanned the 40–80 range historically; latest datapoint in the 60s range earlier, with a potential oversold reading around 24.0 on 2025-10-06 (note: verify data consistency)
    • MACD has shown historical strength but currently indicates potential near-term consolidation or a cross

Important caveats

  • The Enterprise Value figure provided ($168.4B) appears materially smaller than the market cap ($1.584T). This could be a data discrepancy. In any investment decision, verify EV and cash/debt items from the latest 10-Q/10-K.
  • The earnings data provided includes periods with unusual items and tax-rate fluctuations. Normalized earnings provide a clearer view of ongoing profitability.
  • The price target analysis depends on multiple factors (earnings revisions, demand cycles, macro conditions). While the data show upside potential to the median/high targets, a material adverse shift in demand or leverage could compress multiples.

Conclusion

  • AVGO presents a high-quality margin profile, robust cash generation, and favorable long-term secular trends in data-center infrastructure and AI. The immediate price target framework (218/375/420) indicates upside potential, with mid-term upside contingent on continued earnings momentum and multiple expansion. A cautious approach (e.g., gradual position sizing, or buying on dips toward the 50-day MA with stops) could be prudent given the leverage and the premium valuation. The long-term bull case hinges on sustained earnings growth, margin stability, and favorable market dynamics for semiconductors and data-center infrastructure.

If you’d like, I can adjust the price-target timeframes or add scenario-based sensitivity analyses (e.g., what happens if EPS revisions miss or beat by certain percentages) to refine the targets further.

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