On Wednesday, JPMorgan (NYSE: JPM) analyst Harlan Sur gave a strong endorsement to Broadcom (NASDAQ: AVGO), saying his firm would be ‘aggressive buyers at current levels.’
Specifically, the Wall Street expert contradicted recent reports that Alphabet (NASDAQ: GOOGL) is reducing its partnership with the semiconductor giant, saying the banking giant’s research shows no indication of such downscaling.
Meanwhile, JPMorgan assesses that the markets underestimate Broadcom’s rising dominance in new designs, advanced packaging design, company track record, and the intellectual property portfolio.
Overall, Sur reiterated the previous ‘Overweight’ – ‘Buy’ – rating and the $580 12-month price target for a total expected 52.57% rally from the press time.
Additionally, the highly bullish note might have contributed to AVGO stock opening 2.66% in the green at $386.72, creating the possibility that the shares would reverse their June crash that erased 16% since the month started.
Wall Street analysts predict Broadcom stock price target
Elsewhere, the latest downturn appears to have done little to dampen the overall Wall Street bullishness toward Broadcom shares. Indeed, the equity is considered a ‘Strong Buy’ on average, with 24 positive, 3 ‘Hold,’ and no ‘Sell’ recommendations.
The average 12-month price target is just as optimistic, forecasting a 32.14% rally to $516.91, per the data Finbold retrieved from the stock analysis platform TipRanks on June 17.
Notably, however, not all analysts who consider AVGO equity a ‘buy’ estimate it has significant upside potential in the next 52 weeks.
For example, though Broadcom was changing hands at $385.73 on June 5 when DBS’ Fang Boon Foo gave it a ‘Buy’ recommendation, he nonetheless assigned the Street low forecast of $390.
Meanwhile, Bank of America’s (NYSE: BAC) Vivek Arya provided the Street high price target of $630 one day earlier, showing strong confidence in the semiconductor giant despite its stock gaining bearish momentum on the day.
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