Broadcom Ltd (NASDAQ:AVGO) recently closed down post-print, which has not happened in over two years. Nomura analyst Romit Shah notes that on the heels of reporting fiscal third-quarter earnings, ever since then, AVGO’s price action “stands out as an anomaly.”

Nonetheless, Shah reiterates a Buy rating on AVGO with a price target of $180, which represents a 6% increase from where the shares last closed.

As far as most of the investors with whom Shah has discussed AVGO’s price action dilemma, the semi-conductor company’s results were actually strong. The real issue for the majority lies with that “expectations just got out of hand.”

However, Shah explains, “We don’t disagree that expectations were high going into earnings. But after digging deeper into FQ3 results, we believe earnings were not as strong as investors perceive.”

“The upside surprise to eps was the smallest in 5 years,” the analyst adds, with proforma eps hitting $2.89, compared to the Street’s projection of $2.77.

“In the context of a semiconductor group that appears upbeat and will likely beat and raise next month, we believe investors should be asking why wired infrastructure is projected flat for the second consecutive quarter. The performance of this segment relative to the datacenter supply chain (Intel, Nvidia, Internet capex) suggests that Broadcom may have over-shipped in the April period. We would have also expected stronger than low single-digit growth for enterprise storage after seeing stronger than expected results from WDC, STX and Marvell,” Shah concludes, even with AVGO demonstrating bolstered semi-demand and a significant increase in wireless content gains for year-over-year.

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 Romit Shah is ranked #253 out of 4,151 analysts. Shah has a 60% success rate and realizes 9.2% in his annual returns. When recommending AVGO, Shah garners 32.5% in average profits on the stock.

TipRanks analytics exhibit AVGO as a Strong Buy. Based on 25 analysts polled in the last 3 months, 100% rate a Buy on AVGO. The consensus price target stands at $202.73, marking a nearly 20% upside from where the stock is currently trading.