Ahead of its earnings report tonight, Broadcom (AVGO -1.9%) is seeing some renewed bullishness from covering analysts.
Rosenblatt Securities has reiterated its Buy rating and holds a $270 price target. And KeyCorp reiterated its Overweight rating and has a $280 price target. Earlier this week, Cowen reiterated an Outperform and $260 target.
Canaccord Genuity, meanwhile, has boosted its price target to $300 from $272, implying 19% upside from today's price.
The firm says its survey shows pent-up demand for iPhone products, leading to expectations for a strong upgrade cycle considering the potential for a 40% increase in Broadcom content in the new platform.
"With our expectation Apple will sell 250M iPhones in (calendar) 2018 combined with Broadcom’s increasing content share, we believe our Broadcom estimates could prove conservative, especially if the iPhone 8 mix is greater than anticipated," it says.
Accordingly, it's boosting EPS estimates for fiscal 2017 to $15.76 from $15.69, and for 2018 to $17.21 from $16.65.
Trends in the wired division are strong and could offer upside based on cloud and data center market strength, Canaccord says. The company's also likely to "meaningfully" increase its dividend at the end of the October fiscal year.
After the close, Broadcom's expected to report Q3 EPS of $4.03 on revenues of $4.46B.