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Fly News Breaks for January 17, 2020
ON, AVGO, MCHP, TXN
Jan 17, 2020 | 08:06 EDT
Citi analyst Christopher Danely expects aggregate Semiconductor consensus estimates to increase during earnings season for the first time since Q3 of 2019, driven by a combination of improving demand and conservative guidance. Channel inventory is low and inventory replenishment should occur in 2020, driving the next phase of upside for Semi stocks, Danely tells investors in a research note. The analyst remains positive on the group and is Buy rated on Texas Instruments (TXN), Microchip (MCHP), Broadcom (AVGO) and ON Semiconductor (ON). His top picks are Texas Instruments and Microchip. Danely remains cautious on Xilinx (XLNX) saying its "ASIC transition will stunt revenue growth."
News For TXN;MCHP;AVGO;ON From the Last 2 Days
AVGO
May 27, 2022 | 06:38 EDT
Mizuho analyst Vijay Rakesh raised the firm's price target on Broadcom (AVGO) to $725 from $700 and keeps a Buy rating on the shares. The analyst believes the VMware (VMW) acquisition potentially unlocks 45% upside.
AVGO
May 26, 2022 | 14:39 EDT
Piper Sandler analyst Harsh Kumar said in a note partially titled "What's Not To Like" that Broadcom (AVGO) reported "solid" April quarter results, gave July quarter guidance that was "nicely ahead of expectations" and announced the acquisition of VMware (VMW), which "can be transformative to the software business from both a fundamental and financial perspective." Kumar, who argues that Broadcom's core business continues to do "very well" and sees a path to EPS over $50 for the combined company once integration is complete, reiterates an Overweight rating and $750 price target on Broadcom shares.
AVGO
May 26, 2022 | 12:27 EDT
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here
AVGO
May 26, 2022 | 09:01 EDT
Check out this morning's top movers from around Wall Street, compiled by The Fly. HIGHER - VMware... To see the rest of the story go to thefly.com. See Story Here
MCHP
May 26, 2022 | 08:17 EDT
Microchip Technology announces the release of the industry's first microcontroller to combine a secure subsystem and Arm TrustZone technology in a single package. The PIC32CM LS60, which integrates Microchip's Trust Platform secure subsystem, makes it easier to develop end products using one microcontroller rather than two or more semiconductor chips. Now, designers can go to one trusted source to find a 32-bit MCU that is designed to protect products and the end user from remote or physical attacks on their smart home devices, smartphone or tablet accessories, portable medical devices, wearables, connected appliances and industrial robots.
AVGO
May 26, 2022 | 07:06 EDT
Broadcom (AVGO) and VMware (VMW) announced an agreement under which Broadcom will acquire all of the outstanding shares of VMware in a cash-and-stock transaction that values VMware at approximately $61B, based on the closing price of Broadcom common stock on May 25. In addition, Broadcom will assume $8B of VMware net debt. The merger agreement provides for a "go-shop" provision under which VMware and its Board of Directors may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals during a 40-day period following the execution date of the definitive agreement, expiring at 11:59 p.m. Pacific Time on July 5. "There can be no assurance this process will result in a superior proposal. VMware does not intend to disclose developments about this process unless and until its Board of Directors has made a decision with respect to any potential superior proposal," the companies said. Following the closing of the transaction, the Broadcom Software Group will rebrand and operate as VMware, incorporating Broadcom's existing infrastructure and security software solutions as part of an expanded VMware portfolio. Michael Dell, Chairman of the VMware Board, said, "Together with Broadcom, VMware will be even better positioned to deliver valuable, innovative solutions to even more of the world's largest enterprises. This is a landmark moment for VMware and provides our shareholders and employees with the opportunity to participate in meaningful upside." The transaction is expected to add approximately $8.5B of pro forma EBITDA from the acquisition within three years post-closing. Pro forma for each company's fiscal year 2021, software revenue is expected to account for approximately 49% of total Broadcom revenue.
AVGO
May 26, 2022 | 07:04 EDT
Broadcom (AVGO) and VMware (VMW) announced an agreement under which Broadcom will acquire all of the outstanding shares of VMware in a cash-and-stock transaction that values VMware at approximately $61B, based on the closing price of Broadcom common stock on May 25. In addition, Broadcom will assume $8B of VMware net debt. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, VMware shareholders will elect to receive either $142.50 in cash or 0.2520 shares of Broadcom common stock for each VMware share. The shareholder election will be subject to proration, resulting in approximately 50% of VMware's shares being exchanged for cash consideration and 50% being exchanged for Broadcom common stock. Based on the closing price of Broadcom common stock on May 25, the total $138.23 per-share consideration represents a 44% premium to the closing price of VMware common stock on May 20, the last trading day prior to media speculation regarding a potential transaction, and a 32% premium to VMware's unaffected 30-day volume weighted average price, or VWAP. Upon closing of the transaction, based on the outstanding shares of each company as of the date hereof, current Broadcom shareholders will own approximately 88% and current VMware shareholders will own approximately 12% of the combined company on a fully diluted basis. Michael Dell and Silver Lake, which own 40.2% and 10% of VMware shares outstanding, respectively, have signed support agreements to vote in favor of the transaction, so long as the VMware Board continues to recommend the proposed transaction with Broadcom. In connection with the transaction, Broadcom obtained commitments from a consortium of banks for $32B in new, fully committed debt financing. Broadcom expects to maintain its current dividend policy of delivering 50% of its prior fiscal year free cash flow to shareholders. Broadcom expects to maintain an investment grade rating, given its strong cash flow generation and intention to rapidly de-lever. The transaction, which is expected to be completed in Broadcom's fiscal year 2023, is subject to the receipt of regulatory approvals and other customary closing conditions, including approval by VMware shareholders.