Apple (AAPL) supplier Broadcom Ltd (NASDAQ:AVGO) is in focus today after the semiconductor concern raised its bid to buy Qualcomm (QCOM) to $121 billion, or $82 per share. The cash-and-stock deal -- which includes a $10 billion termination fee, according to CNBC -- represents Broadcom's "best and final offer." While QCOM is trading down 2.6% today, AVGO shares were last seen trading up 1.6% at $239.21.
This offer comes less than a week after Broadcom lowered its fiscal first-quarter guidance, with earnings due out Tuesday, Feb. 27. From a broader standpoint, AVGO is up 16% year-over-year and hit a record high of $285.68 on Nov. 27, but has since fallen below the formerly supportive 160-day moving average. The shares are now trading just above the long-term 320-day moving average, which they haven't breached in almost two years.
Analysts remain overwhelmingly bullish. All 18 brokerage firms in coverage have "strong buy" ratings on AVGO stock, and the average 12-month price target stands all the way up at $317.41. That represents a 32.7% jump from current levels. There's been almost no interest from short sellers, either, with just 1% of the equity's float sold short.