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Randall Stephenson
Katie Kramer | CNBC
Here are the biggest calls on Wall Street on Tuesday:
Morgan Stanley upgraded Broadcom to ‘overweight’ from ‘equal weight’
Morgan Stanley named the semiconductor designer and developer as a top pick and said it had “increased” confidence in the company’s strategy.
“We upgrade AVGO to Overweight on increased confidence in the company’s software strategy against low expectations. We estimate that AVGO’s current P/E multiple of 13.5X implies risk that Symantec’s revenue will decline from a reset level of $2bn and targeted cost cuts prove aggressive. In contrast, we model revenue stable at $2bn annually and have the company reaching its target of $1bn in synergies on a run-rate basis by Q4’20.”
Read more about this call here.
MoffettNathanson downgraded AT&T to ‘sell’ from ‘neutral’
MoffettNathanson said in its downgrade of AT&T that the company can’t expect its wireless business to carry the company forward.
“Almost as soon as AT&T issued its 2020 and three-year guidance, investors began to struggle with a very simple, but very vexing, question. How in the world can they get there? On the surface, the numbers don’t sound challenging, especially the forecast of 1%-plus revenue growth. But the more we poke at our estimates, the harder it is for us to imagine they can be achieved. Let’s leave aside for a moment that all signs point to the wireless industry getting more competitive; the real problem is with everything else.”
Read more about this call here.
