Broadcom: Evercore ISI Group raises PT to $370, maintains Outperform rating.

Broadcom: Evercore ISI Group raises PT to $370, maintains Outperform rating.

Evercore ISI Group has raised its price target for Broadcom Limited (NASDAQ:AVGO) to $370, while maintaining an Outperform rating. This decision comes ahead of the company's July quarter earnings report, scheduled for Thursday after market close.

Broadcom's impressive market capitalization of $1.4 trillion and robust gross profit margin of 77% have contributed to the firm's positive outlook. The semiconductor giant has shown remarkable financial strength, with year-over-year revenue growth that bottomed in the April 2025 quarter. Evercore ISI cited several positive factors supporting the stock, including a favorable TPU product cycle at Google, strong demand for high-speed datacenter connectivity and networking chips, and a 33.85% revenue growth in the last twelve months [1].

The firm acknowledged that positive fundamentals may be partially priced into the stock already, as Broadcom trades at a next-twelve-month P/E ratio of 38x, near an all-time high and well above its 10-year range of 10x-20x. Broadcom shares have nearly doubled since their last trough in April 2025, rising 96% compared to the S&P 500’s 16% gain during the same period [1].

Evercore ISI's new price target is based on calendar 2027 EPS of $10.20 and a 37x forward P/E multiple discounted back one year at 10%. This reflects the company's strong fundamentals and the potential for continued growth in the data center and AI markets.

In other recent news, Broadcom announced that VMware Private AI Services will become a standard component of VMware Cloud Foundation 9.0, making the platform AI-native. This move has seen nine of the top 10 Fortune 500 companies commit to the platform, with over 100 million cores licensed globally. Additionally, Broadcom plans to integrate NVIDIA’s Blackwell GPUs into VMware Cloud Foundation, aiming to enhance AI capabilities for enterprises and cloud service providers [1].

On the financial front, Cantor Fitzgerald raised its price target for Broadcom to $350, citing growth in the Semiconductor Solutions segment, particularly in Custom Silicon products. Meanwhile, Nvidia reported revenue of $46.7 billion, surpassing the Street consensus, with notable performance in its Data Center and Gaming segments [1].

References:
[1] https://www.investing.com/news/analyst-ratings/evercore-isi-raises-broadcom-stock-price-target-to-342-on-data-center-demand-93CH-4223791
[2] https://www.ainvest.com/news/evercore-isi-group-maintains-outperform-rating-marvell-technology-cuts-pt-122-2508/