CFRA Lifts Broadcom Limited (AVGO) Price Target on Earnings Growth Prospects

Broadcom Inc. (NASDAQ:AVGO) is one of the best cybersecurity stocks to buy right now. On September 5, CFRA raised the stock’s price target to $380 from $340 while reiterating a ‘Buy’ rating.

CFRA Lifts Broadcom Limited (AVGO) Price Target on Earnings Growth Prospects

The price target hikes come on the company achieving solid gross profit margins of 77.19% and robust revenue growth of 28.01%. The impressive financial metrics come from the company’s AI semiconductor business achieving accelerated growth amid a growing order base.

Existing customers, such as Alphabet, are placing higher orders, strengthening the revenue base. Likewise, the research firm has echoed that the addition of a key customer could push the company’s sales above the $10 billion mark.

Consequently, CFRA has adjusted its earnings estimates for the company. It now expects the company to generate $6.71 in earnings per share in 2025, up from the initial estimate of $6.65. It has also increased FY 2026 EPS to $9 from $8.13 and FY 2027 to $10.95 from $9.82.

Broadcom Inc. (NASDAQ:AVGO) offers cybersecurity solutions by leveraging the Symantec and Carbon Black portfolios. It provides comprehensive enterprise security solutions across endpoint, network, information, and email security for on-premises and cloud-based environments. Its products and services detect and block various threats, protect sensitive data, ensure business continuity, and enforce zero-trust security models.

While we acknowledge the potential of AVGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.