The Erste Group recently downgraded shares of chipmaker Broadcom (AVGO) to "Hold" from "Buy." Opining that AVGO stock is trading at overvalued levels, **** yst Hans Engel said that "the potential for further price appreciation currently appears limited." However, in the same note, Engel dispelled fears about Broadcom's long-term prospects by reiterating that the company's gross margin and operating margin should remain at high levels, with revenue expected to jump 89% from the previous year to $29.4 billion.
After witnessing a drop-off, AVGO stock recovered to end the day marginally lower on July 7. Overall, valued at a market capitalization of about $1.8 trillion, shares of Broadcom are up 17% on a year-to-date (YTD) basis.
Jeff Bezos Says 'We Don't Have a Revenue Problem' in America — Bottom Half Paying Just 3% of Taxes Means 'We Can Find 3%'
SpaceX Has Massive Multiyear Put Options Volume As SPCX Falls Below IPO Price
Intel Stock Is 'Too Good to Ignore' as HSBC Sets a New Street-High Price Target