In a research report released Thursday, Brean Capital analyst Mike Burton maintained a Buy rating on Avago Technologies Ltd (NASDAQ:AVGO) and raised the price target to $145 (from $120), after the company reported strong fiscal first-quarter results and announced the acquisition of Emulex Corporation (NYSE:ELX), a leading supplier of Fibre Channel connectivity. The new price target represents a potential upside of 18% from where the stock is currently trading.
Burton noted, “AVGO continues to benefit from its exposure to Apple, but also from the increasing demand for high-end filters as 4G demand proliferates worldwide. We view the ELX acquisition favorably for its accretion due to the large potential OM improvement and diversification against AVGO’s very strong (but seasonal) Wireless business. We reiterate our Buy rating and are raising our estimates for the strong performance; our target is increasing due to our organically increased estimates plus our estimate for ELX accretion of $0.25-$0.30 in CY16.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mike Burton has a total average return of 21.5% and a 76.9% success rate. Burton has a 18.7% average return when recommending AVGO, and is ranked #127 out of 3483 analysts.