Broadcom’s (AVGO) VMware can contribute double-digit growth for several years because more workloads and activity continue to be supported virtually through the use of VMware technology, BofA Securities said Tuesday in a note.
“We view this as key for [Broadcom’s] infra software strategy, as VMware (60% of segment sales) could accelerate segment growth from 4%-5% to 7%-8% long-term,” BofA said.
The firm said that even though Broadcom hasn’t provided targets beyond 2024, it sees the potential of VMware to drive the company’s EPS toward $60 in 2025.
Broadcom, a semiconductor manufacturing company, completed its acquisition of VMware in November.
BofA maintained Broadcom’s buy rating and raised the price objective to $1,250 from $1,200.