– Avago Technologies provides an extensive range of analog, mixed-signal and optoelectronic components and subsystems to more than 40000 end customers.
– Avago is working with Apple ($APPL) providing in-demand technology.
– Their patented innovations are used in wide range of wireless, wireline, and industrial applications.
– Oppenheimer analysts estimate that Apple represents about 15% of Avago sales, and that the company saw a doubling of content in iPhone 6/6+ vs iPhone 5s/5c by securing the ultra-high- and high-band LTE PADs. Clearly, the super strong iPhone 6 sales reported on Monday helped drive AVGO shares up around 6%.
– In the past 60 days, earnings estimates for Avago for this year have gone from $3.31 to $4.12, a 24.5% increase. And 2015 projections have vaulted from $4.59 to $5.86, a 27.7% jump. These numbers represent 58% earnings growth for this year and 42% for next year. Here’s a look at the potential “earnings path” based on analyst estimates…
– There is a big interestest from instiutional investors in the last 14 days. Company forms confirms interest and share deals.
– Here is the summary of analyst estimates:
OCT 16 Brean Capital: Upgrade to Buy, PT $87.00 OCT 06 Canaccord Genuity: Buy, Boost PT to $97.00 SEP 30 Nomura: Buy, Boost PT to $95.00 SEP 09 Barclays: Overweight, Boost PT to $100.00 SEP 05 Citigroup: Buy, Boost PT to $100.00 SEP 02 DA Davidson: Neutral, Boost PT to $84.00 AUG 29 RBC Capital: Buy, Boost PT to $99.00 AUG 29 Jefferies Group: Buy, Boost PT to $84.00 AUG 29 Barclays: Buy, Boost PT $90.00 AUG 29 Morgan Stanley: Positive, Boost PT to $97.00 AUG 29 Pacific Crest: Outperform, Boost PT $90.00 AUG 29 Oppenheimer: Outperform, Boost PT $100.00 AUG 29 Deutsche Bank: Buy, Boost PT $90.00
Long Price: 82.21 / added long 81.57 / added long 80.51 (new average 81.27)
Target Sell Price: $85-86 (depending on momentum and volume)
Sold: $110.83 (19.02.2015)