There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Vocera (NYSE: VCRA) and Broadcom (NASDAQ: AVGO) with bullish sentiments.
Vocera (NYSE: VCRA)
In a report released today, Mohan Naidu from Oppenheimer reiterated a Buy rating on Vocera (NYSE: VCRA), with a price target of $36. The company’s shares closed yesterday at $27.87.
Naidu noted:
“We hosted VCRA mgmt for meetings that addressed several concerns from investors and highlighted the growth opportunities, continued expansion of margin profile and expected use of recently raised convertible debt. ASC 606 pressured CY18 growth to low teens, but mgmt expressed confidence in mid-teens organic growth going forward based on the competitive position, market conditions and visibility into backlog. The favorable convertible market offered an opportunity to raise capital with no near-term dilution and gives the company more flexibility in pursuing inorganic growth. While the lower backlog coverage (due to ASC606) makes the upside to CY18 numbers limited, we expect the valuation to expand as investors’ focus shifts toward CY19 and beyond growth, and expanding margin profile. Reiterate Outperform rating.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 11.2% and a 58.9% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Express Scripts.
Vocera has an analyst consensus of Moderate Buy, with a price target consensus of $33.33.
See today’s analyst top recommended stocks >>
Broadcom (NASDAQ: AVGO)
Oppenheimer analyst Rick Schafer maintained a Buy rating on Broadcom (NASDAQ: AVGO) today and set a price target of $315. The company’s shares closed yesterday at $264.68.
Schafer observed:
“Broadcom reported F2Q (April) sales/EPS of $5.0B/$4.88 better than pre-announced and higher than consensus $5.0B/$4.78E. F3Q (July) guidance of $5.1B/$4.80 topped the Street’s $5.1B/$4.59E. Core Wired offset above seasonal Apple softness. We model on weaker iPhone units. Mgm’t remains optimistic and sees sustainable revenue growth from bullish trends in DC/cloud and enterprise. Margins were a stand-out, with GM/OM hitting record high 67%/49% on mix and operating efficiencies. Brocade Fibre channel switch contributed >$400M. FCF/return was another standout. Broadcom executed $1.5B of its recently announced $12B buyback program and we expect mgm’t to remain active buying shares and see further dividend increases. Potential future strategic/accretive M&A presents added upside. Our top large-cap pick, we remain buyers with a $315 price target.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 17.5% and a 74.3% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as NXP Semiconductors, Skyworks Solutions, and Texas Instruments.
Currently, the analyst consensus on Broadcom is Strong Buy and the average price target is $310.67, representing a 17.4% upside.
In a report issued on May 24, Evercore ISI also initiated coverage with a Buy rating on the stock with a $300 price target.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Read More on AVGO:
