Evercore Stays Bullish on Broadcom (AVGO) After Earnings, Lifts Target to $490

Group 1 - Broadcom Inc. has been highlighted as a key player in the AI sector, with Evercore ISI raising its price target to $490 from $403 while maintaining an Outperform rating, viewing the post-earnings dip as an attractive entry point based on its AI trajectory [1][4] - The company reported revenue of $18.02 billion for the October quarter, exceeding expectations of $17.46 billion, and adjusted earnings per share (EPS) increased by 37% to $1.95, surpassing the expected $1.87 [2] - Growth in the AI semiconductor business was significant, coming in at 74%, which exceeded Broadcom's guidance of 66% growth, although shares fell approximately 4% post-earnings call [3][4] Group 2 - The company reiterated its Outperform rating after reporting October quarter revenues 3% above expectations and raising January quarter revenues by 4%, with AI revenues accelerating from +74% YoY to +100% YoY, and management projecting visibility for AI revenues to double in both FY26 and FY27 [4] - The post-earnings decline in share price is viewed as an attractive entry point, with an implied 2027 P/E of 29x and a 2026 PEG of 1.1x, leading to an increased price target of $490 based on a discounted EPS of $13.36 for 2027 [4]