CFRA Lifts Broadcom Limited (AVGO) Price Target on Earnings Growth Prospects

Broadcom Inc. (NASDAQ:AVGO) is one of the best cybersecurity stocks to buy right now. On September 5, CFRA raised the stock’s price target to $380 from $340 while reiterating a ‘Buy’ rating.

The price target hikes come on the company achieving solid gross profit margins of 77.19% and robust revenue growth of 28.01%. The impressive financial metrics come from the company’s AI semiconductor business achieving accelerated growth amid a growing order base.

Existing customers, such as Alphabet, are placing higher orders, strengthening the revenue base. Likewise, the research firm has echoed that the addition of a key customer could push the company’s sales above the $10 billion mark.

Consequently, CFRA has adjusted its earnings estimates for the company. It now expects the company to generate $6.71 in earnings per share in 2025, up from the initial estimate of $6.65. It has also increased FY 2026 EPS to $9 from $8.13 and FY 2027 to $10.95 from $9.82.

Broadcom Inc. (NASDAQ:AVGO) offers cybersecurity solutions by leveraging the Symantec and Carbon Black portfolios. It provides comprehensive enterprise security solutions across endpoint, network, information, and email security for on-premises and cloud-based environments. Its products and services detect and block various threats, protect sensitive data, ensure business continuity, and enforce zero-trust security models.

While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.