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ERROR: type should be string, got "https://www.barrons.com/articles/broadcom-is-a-winner-for-the-stay-at-home-era-and-beyond-analyst-says-51591720450\nBroadcom Is a Winner for the Stay-at-Home Era and Beyond, Analyst Says\nJune 9, 2020 12:34 pm ET\nBroadcom has a healthy base of recurring revenue, according to Argus analyst Jim Kelleher.\nSpencer Platt/Getty Images\nBroadcom stock got a small boost when it recently reported earnings that showed “limited impact” from the coronavirus pandemic. Argus argues that the shares deserve more attention.\nAnalyst Jim Kelleher reiterated a Buy rating on Broadcom (ticker: AVGO) on Tuesday, while adding $100 to his price target, taking it to $350 from $250.\nKelleher said there was plenty to like about the company’s fiscal second quarter. The top line came in ahead of expectations, and the company was able to notch double-digit growth in its infrastructure software division, helping to offset a small decline in semiconductors, he said.\nIndeed, while many other companies’ sales took a hit from the Covid-19 crisis, Broadcom’s year-over-year revenues expanded, helped by acquisitions.\n“We believe that Broadcom is well positioned in key markets, which should drive revenue growth and margin expansion in the coming quarters and years,” he said. “The data traffic trends accelerated by work and learn from home, virtual social interactions and video and game streaming during the pandemic are unlikely to recede in the near term, which should benefit Broadcom’s data center and storage business.”\nThere are positive factors beyond the stay-at-home focus. While Apple (AAPL) hasn’t said when it will begin to sell a 5G iPhone, Kelleher expects the eventual launch to “drive a major smartphone upgrade cycle over the next several years.”\nHe also noted that the shares—up less than 1% this year—trade at a discount to peers even though Broadcom has a robust base of recurring revenue, built on multiyear contracts. “The company’s strong cash flow generation and financial strength represent a foundation in uncertain times,” Kelleher said.\nBroadcom’s small year-to-date gains belie the huge rally the shares have seen since the U.S. ground to a halt this spring. The shares have nearly doubled since their March 18 lows.\nThe run-up makes sense, given that the company’s specialties—chips and security software—look well positioned to benefit from the stay-at-home environment. Yet the modest lift the stock got after the earnings news speaks to how high expectations have gotten for Broadcom and other recent winners.\nStill, Broadcom’s valuation remains low, making it less vulnerable to a sharp decline than other beneficiaries of Covid-19. Broadcom was roughly flat at $317.34 in midday trading, while the S&P 500 was down by about 0.8%.\nBroadcom stock got a small boost when it recently reported earnings that showed “limited impact” from the coronavirus pandemic."