AAL

Broadcom Stock Bounces After 'Best and Final Offer' For Qualcomm

Analysts remain extremely bullish on AVGO

Managing Editor
Feb 5, 2018 at 10:19 AM
facebook X logo linkedin


Apple (AAPL) supplier Broadcom Ltd (NASDAQ:AVGO) is in focus today after the semiconductor concern raised its bid to buy Qualcomm (QCOM) to $121 billion, or $82 per share. The cash-and-stock deal -- which includes a $10 billion termination fee, according to CNBC -- represents Broadcom's "best and final offer." While QCOM is trading down 2.6% today, AVGO shares were last seen trading up 1.6% at $239.21.

This offer comes less than a week after Broadcom lowered its fiscal first-quarter guidance, with earnings due out Tuesday, Feb. 27. From a broader standpoint, AVGO is up 16% year-over-year and hit a record high of $285.68 on Nov. 27, but has since fallen below the formerly supportive 160-day moving average. The shares are now trading just above the long-term 320-day moving average, which they haven't breached in almost two years.

Analysts remain overwhelmingly bullish. All 18 brokerage firms in coverage have "strong buy" ratings on AVGO stock, and the average 12-month price target stands all the way up at $317.41. That represents a 32.7% jump from current levels. There's been almost no interest from short sellers, either, with just 1% of the equity's float sold short.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.