BofA analyst Vivek Arya reiterated a Buy rating on Broadcom Inc (NASDAQ: AVGO) and a price target of $1200.
Arya's first take estimate is around 2.3% and 7.3% proforma EPS accretion in FY24 and FY25, with an upside to 10%+ accretion and $60+ in proforma EPS power for AVGO in CY25 if it's able to realize planned synergies and deliver faster than assumed.
Key risks are near-term macro and longer-term in extracting VMware Inc synergies and managing the ~$67 billion in gross debt (<2.5x implied leverage, but high in absolute terms).
Arya views any stock volatility on VMW close as an enhanced buying opportunity for a best-in-class computing vendor at a compelling valuation. VMW reduces EPS cyclicality, though with slower growth, AVGO ...