Citi Has Buy on Avago Technologies

Citi Investment Research is out with a research report on Avago Technologies (NASDAQ: AVGO) and it has a Buy rating and a $42 price target on shares.

In a note to clients, Citi Investment Research writes, "AVGO outperformed the analog group 5%, 22%, and 6% in 1Q11, 2Q11, and 3Q11. In October though, AVGO underperformed analog 8% based on: 1) a rotation out of winners to fund losers given relative valuation dispersion and to play a potential semi sector rebound, 2) 'sell the news' mentality following AAPL's iPhone 4S release, and 3) confusion around radio content allocation among AVGO, SWKS and TQNT after Thursday's initial release of an iPhone 4S teardown (See Fig 1)."

Shares of AVGO closed at $34.06 yesterday.