Following a sell-off in the previous session, Broadcom (AVGO) shares experienced a rebound during Friday’s trading, closing with a 5.4% increase. In comparison, the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) also rose by 1.8% and 2.1%, respectively.
Broadcom’s stock displayed significant gains as the broader market engaged in rebound trading. This upward movement in the stock price coincided with new analyst coverage, despite the coverage introducing a lower one-year price target.
The decline in stock prices the previous day followed an announcement from the White House revealing that the effective tariff rate on China was 145%, which was substantially higher than the rate mentioned by President Trump in a social media post on Wednesday. Despite this, the market managed to recover on Friday, contributing to the rise in Broadcom’s valuation during the recovery rally. Nevertheless, Broadcom’s stock remains approximately 22% lower for the year 2025, and the company is valued at about 27 times its anticipated earnings for the year.
Citigroup’s analyst Christopher Danely released new coverage prior to the market opening, adjusting his one-year price target for Broadcom stock from $220 to $210 per share. Danely now foresees a likely recession in the U.S. and anticipates that tariffs on China will significantly affect earnings and valuation multiples for semiconductor stocks. Despite the lowered price target, Citi’s lead analyst maintained a buy rating on Broadcom stock. Achieving Danely’s revised price target would imply a potential 15% increase from its current valuation.
Additionally, it is disclosed that Citigroup is an advertising partner of Motley Fool Money. Keith Noonan does not hold positions in the stocks mentioned, and the Motley Fool recommends Broadcom, with a defined disclosure policy.
