Why Are Shares Of Broadcom Up Today?
Portfolio Pulse from Ryan Gustafson
Broadcom Inc. (AVGO) shares are up on news that its subsidiaries have commenced two multi-year statements of work (SOW) with Apple Inc (AAPL) to supply high-performance RF and wireless components and modules for Apple products. BofA Securities analyst Vivek Arya maintained a Buy rating for Broadcom and raised the price target from $725 to $800.
May 23, 2023 | 5:52 pm
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NEUTRAL IMPACT
Apple has commenced two multi-year SOWs with Broadcom subsidiaries to supply high-performance RF and wireless components and modules for its products.
While the news of Apple's supply agreements with Broadcom is a positive development for the company, it is not expected to have a significant short-term impact on Apple's stock price, as it is a routine supply chain arrangement.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Broadcom shares are up due to the commencement of two multi-year SOWs with Apple to supply high-performance RF and wireless components. BofA Securities analyst maintains a Buy rating and raises the price target to $800.
The news of Broadcom's multi-year supply agreements with Apple is a positive development for the company, as it secures a steady revenue stream from a major customer. This, coupled with the BofA Securities analyst's Buy rating and increased price target, indicates a positive short-term impact on Broadcom's stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100