Deutsche Bank has increased its price target on Broadcom (NASDAQ: AVGO) from $430 to $515 on Thursday, June 4, maintaining a ‘Buy’ rating on the technology company following a strong earnings beat.
In the research note, the bank highlighted Broadcom’s solid quarterly reports, as well as artificial intelligence (AI) revenue guidance. Specifically, Broadcom reported growth of 25% over the last twelve months, together with a gross profit margin of 77%.
Previously, the company had guided for fiscal 2027 AI revenue past $100 billion. Elaborating on its new Broadcom share price target, however, Deutsche Bank argued that AI revenues will likely exceed the original target, with its own estimate at $125 billion for fiscal 2027 and approximately $190 billion for fiscal 2028.
The new $515 forecast represents roughly 23 times Deutsche Bank’s calendar year 2027 earnings per share (EPS) estimate.
Jefferies raises its AVGO share price target
Jefferies hsa also raised its AVGO stock price target from $500 to $550, likewise with a ‘Buy’ rating.
Like Deutsche Bank, Jefferies cited second-quarter results, adding that Broadcom’s operating margins should improve further as AI revenue accelerates.
Among the chief catalysts, analyst Blayne Curtis argued, will be next year’s ramp-up on the part of Meta Platforms (NASDAQ: META) and OpenAI.
Still, the firm noted that the July guidance fell short of expectations and that gross margins were also guided lower than expected.
Is Broadcom stock a buy?
Following the latest revision, the average 12-month Broadcom stock price target has climbed to $497, which implies a roughly 3.7% upside over the next year, based on TipRanks data.
The lowest projected price over the past three months has been $314, while the highest one sits at $630. Overall, Broadcom has been rated a ‘Buy’ 25 times and ‘Hold’ just three times in the same period, meaning it carries a ‘Strong Buy’ Wall Street consensus.
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