Macquarie Equity Research upgraded Broadcom to outperform from neutral and raised its price target to $490 from $437, implying 33% upside from Wednesday’s close. Analyst Arthur Lai said the risk of Google insourcing has played out and seems priced in after the July correction. Broadcom has designed and supplied custom Tensor Processing Units for Google for several years, but investors had concerns about the longevity of that partnership. The stock lost 23% over the past three months despite better-than-expected fiscal third quarter results and a positive forecast for the next fiscal year. Of the 51 analysts covering Broadcom, 47 have a buy or strong buy rating.
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