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Fly News Breaks for November 3, 2017
BRCD, AVGO
Nov 3, 2017 | 07:48 EDT
JPMorgan analyst Harlan Sur says Broadcom's (AVGO) U.S. domiciliation process will occur with or without tax reform, which should pave the way for the Brocade (BRCD) deal to close in two weeks. Assuming a worst case of no tax reform, the analyst estimates the company's earnings power including the contribution from Brocade will be $18.00-$18.50 in 2018. Assigning a Semiconductor group price-to-earnings multiple would drive fair value for Broadcom to around $310 to $315 per share, Sur tells investors in a research note. Further, citing strong near-term demand trends, the analyst remains confident management raising the annual dividend by at least 50% to $6.00 in early December. He keeps an Overweight rating on Broadcom shares with a $315 price target. The stock closed yesterday up 21c to $259.50 after announcing its move back to the U.S.