AVGO - Broadcom

[tol1]

Have not seen a thread on Broadcom (ticker AVGO US) here. Post-blocked Qualcomm deal share has come back to pre-bid 230-240$ levels. Not sure they are going after another blockbuster deal, but given history likely to be more ahead.

 

Any thoughts fundamentally on the name and key drivers going fwd? Sell-side is extremely bullish vs current valuation - why is that?

 

[tol1]

Following up on this one, in case someone has been / or is about to be invested. In particular, looking for differentiated views vs sell-side which is very bullish - from margins and top line growth going forward to valuation and downside potential from here.

[tol1]

AVGO apparently buying CA, a software company. AVGO stock down 6% after-market. This is sth I have been worried about: AVGO doing deals outside their core franchises.

 

https://techcrunch.com/2018/07/11/broadcom-acquires-ca-technologies-for-18-9b-in-cash/

 

 

[frommi]

AVGO apparently buying CA, a software company. AVGO stock down 6% after-market. This is sth I have been worried about: AVGO doing deals outside their core franchises.

 

https://techcrunch.com/2018/07/11/broadcom-acquires-ca-technologies-for-18-9b-in-cash/

 

If they can really run it at >50% operating margins they don`t have to do a lot of stuff right to extract value from this deal. But thats just my opinion. Interesting that nobody here talks about Broadcom given that it is a compounder that has compounded at 40% for the last 15 years and you can buy it right now for 10 times next years earnings.