Broadcom: Jefferies still a buyer despite warning

(CercleFinance.com) - On Friday an analyst at Jefferies confirms his "buy" recommendation on the Broadcom group share, after quarterly results that were marked by higher-than-expected EPS, but also by a revision in outlook.


"Broadcom lowered its FY19 revenue outlook by -8%, citing broad-based weakness due to the ban on Huawei ($900m in revenues last year) and the US/China trade conflict." Although reducing its estimates, it believes that, "Longer term, our base case assumes the trade conflict resolves, or demand for Huawei equipment translates to other OEMs," the broker says.

Jefferies confirms its target price of 324 dollars for the share.



Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.