Broadcom Ltd (NASDAQ:AVGO) posted third-quarter results for the fiscal year of 2016 with sales soaring $45 million ahead on the wireless and industrial forefront. The strength showcased in the sales performance has Merrill Lynch analyst Vivek Arya largely bullish on the wireless chip maker despite a $20 to $30 million “miss” in the prominent wired segment, a result of component shortages in set top boxes.

Even in light of likely near-term volatility, especially considering Apple’s iPhone 7 event tomorrow “plus the 22% YTD run in the stock,” Arya reiterates a Buy rating on shares of AVGO, while boosting the price target from $210 to $215, which represents a 24% increase from where the stock is currently trading.

Additionally, Arya has raised his estimate for the fiscal year of 2016 by 3% to $11.33 and has raised his estimate for the fiscal year of 2017 by 4% to $13.46, which indicates an increase of 19% year-over-year.

From Arya’s perspective, the company’s fourth-quarter outlook comes across “solid,” likely to include 20 to 30% content growth in the iPhone, which he believes should offset “any unit risks, with content gains to continue next year.”

Second, the analyst observes “Solid operational execution, with EPS growing 2x faster than sales.”

Third, Arya praises AVGO for marked “leadership in every segment incl. RF, cloud switching, cable broadband and enterprise storage.”

However, “AVGO remains well-liked and well-owned – for justifiable reasons in our view – but it creates potential “crowding” risks,” Arya concludes, keeping his eyes peeled toward potential 1H season volatility caused by an iPhone 2017 revamp.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, five-star analyst Vivek Arya is ranked #31 out of 4,147 analysts. Arya has a 55% success rate and yields 11.9% in his annual returns. When recommending AVGO, Arya garners 31.5% in average profits on the stock.

TipRanks analytics exhibit AVGO as a Strong Buy. Based on 24 analysts polled in the last 3 months, 100% rate a Buy on AVGO. The 12-month average price target stands at $203.61, marking a nearly 18% upside from where the shares last closed.