Avago (NASDAQ:AVGO) Looks Good on Cash, Execution, Balance Sheet

Barclays (NYSE:BCS) reiterated their "Overweight" rating on Avago Technologies (NASDAQ:AVGO), saying they're a key pick in the sector.

"We expect Avago to report solid October results in line with consensus, with revenues up mid-single digits as guided, as end-market trends likely remained robust ex earnings into October. Going forward, we believe there is some potential for AVGO, like other analog peers, to see further moderation in industrial bookings, possibly adjusting Jan Q industrial revenues lower with areas such as automotive still likely firmer, with management likely to sound upbeat on gross and operating margin trends into CY11. We view AVGO as a key pick with crisp execution, solid cash generation and a robust balance sheet," said Barclays.

Avago closed Thursday at $28.41, gaining $1.55, or 5.77 percent. Barclays raised their price target on them from $26 to $28.