Citi Comments on Avago Technologies' Year to Date Gain

Avago Technologies Limited (NASDAQ: AVGO) gained +22% year to date, Citi reports, noting that the company outpaced analog's +13%.

“Strength shows: 1) wireless – likely iPhone 5 participation + VZ iPhone win (Fig 1), 2) wireline – GM accretive design-ins w/ copper SERDES and optical IBM super computer, and 3) valuation – discount narrowing as private equity stake whittles (Fig 2),” Citi writes. “We expect AVGO will again outperform in 2H11 as strong new product execution puts upward pressure on GMs, and as AVGO will likely begin its inaugural buyback end-11.”

Avago Technologies closed Wednesday at $34.63.