$AVGO Could Apple deal help burst resistance for Broadcom ?Broadcom Inc disclosed Monday afternoon that it has landed a two-year deal with Apple Inc to provide some components, sending shares higher in after-hours trading. In a filing with the Securities and Exchange Commission, Broadcom said that it had agreed to supply radio-frequency components for smartphones, tablets and smartwatches, and that Apple said it intends to rely solely on Broadcom for the components as long as the company can meet commitments for quantity and quality.
Impressive as the deal may be we are just not overly confident heading into earnings as certain worries still hang over the stock in regards their recent acquisitions, the earnings call should shed light on the situation. From a technical perspective the stoch has made a great recovery from the 21% selloff but major resistance has now stopped it in its tracks. Hopefully earnings will be the catalysts to get moving towards the highs once again and closer to the Average Analysts price target of $321.
Rosenblatt Securities reiterated buy rating with $350 price target on Monday 10th June
“We see Huawei as already built in to the current share price for AVGO and reiterate our Buy rating and $350 PT into the print (Thursday, June 13 th ) on the company’s secular semiconductor prospect and FCF generation.”
