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Friday, Oct 18
Avago added to Goldman's Conviction Buy list
- Analyst James Schneider observes iPhone 5S teardowns suggest Avago (AVGO +2.1%) grew its power amplifier content share within Apple's flagship smartphone for the third straight year, thanks to the 5S' need to support an unprecedented number of 4G frequency bands (plays to Avago's RF filter strengths).
- Schneider also expects the share of new smartphones featuring 4G connectivity to keep rising (that's widely expected), particularly for 10% customer Samsung, and predicts industrial and (thanks to 40G network upgrades) networking demand will remain healthy.
- He does note Avago is set to face mobile competition from Japan's Murata and Taiyo Yuden, who are working on chips sporting similar (FBAR) filters, but considers Avago's lead safe over the near-term.
- Shares made new 52-week highs today, and are up 46% YTD.