Price Chart

Executive Summary

Macquarie double-downgraded Broadcom Inc. (AVGO) from Outperform to Neutral on June 4, 2026, setting a price target of $437, implying 8.8% downside from the current $479.23. The call is a sharp contrarian move against a heavily bullish consensus — 52 of 56 analysts rate the stock Buy or Strong Buy, with only 4 Holds and zero Sells. Macquarie’s 55% accuracy on 441 calls and average 5.6% return place it below the top-tier firms covering AVGO, such as Cantor Fitzgerald (100% on 6 calls) and Wells Fargo (100% on 3 calls). The new $437 target is well below the consensus mean of $486.85 and median of $500, and sits near the low end of the $215.88–$630 range. Analyst momentum is negative — 1 downgrade versus 0 upgrades in the past 30 days, and EPS revisions have been mixed, with more downward revisions in the near quarters. Insider selling is notable: CFO Velaga S. Ram sold over $13.6M in early April, and other executives also sold, aligning with the bearish analyst signal. Institutional activity shows a mix — Norges Bank exited a large position while Two Sigma more than doubled its stake. The bottom line: Macquarie’s downgrade is a rare bearish call in a sea of bullish ratings, but the firm’s below-average accuracy and the stock’s strong institutional support suggest traders should treat this as a cautionary signal rather than a full reversal.

Impact Score

Consensus & Targets

Of 56 analysts covering AVGO, 17 rate it Strong Buy, 35 Buy, 4 Hold, 0 Sell, and 0 Strong Sell — 92.9% are bullish. The consensus is overwhelmingly positive, making Macquarie's downgrade a clear outlier.

The consensus mean price target is $486.85, median $500, high $630, low $215.88. At $479.23, AVGO trades 1.6% below the mean, implying 1.6% upside to consensus. Macquarie's $437 target is 10.2% below the mean and sits in the bottom quartile of the range.

Recent Analyst Activity

In the past 30 days, there has been 1 downgrade and 0 upgrades for AVGO. EPS revisions show a mixed trend: for the current quarter, 4 upward revisions and 5 downward in 30 days; for the next quarter, 3 up and 5 down; for the current fiscal year, 6 up and 5 down; for next fiscal year, 10 up and 3 down. Near-term estimates are being revised slightly lower, while longer-term estimates are being raised.

Firm Track Record — Macquarie

Macquarie accuracy: 55% on 441 calls | avg return: 5.6%

Industry benchmark: mean 51% ± 11%. Top tier: ≥61% (mean + 1σ). Based on 15 firms with ≥5 scored calls.

Macquarie has a 55% accuracy rate on 441 calls with an average return of 5.6%, placing it below the top-tier firms covering AVGO. Top performers include Cantor Fitzgerald (100% on 6 calls, avg return 23.9%) and Wells Fargo (100% on 3 calls, avg return 17.6%). Macquarie's track record is average at best, reducing the weight of this contrarian call.

Earnings Estimates

Cross-Platform Signals

Insider selling is heavy and aligned with the bearish signal: CFO Velaga S. Ram sold over $13.6M in early April, and other executives sold as well. Congressional activity is mixed — two Republican sells (small amounts) and two Democratic buys (small amounts). Institutional activity shows divergence: Norges Bank exited a large position, while Two Sigma more than doubled its stake (+520%). Short interest is 30.7% of float, a very high level indicating significant bearish positioning. The insider sales and high short interest converge with Macquarie's downgrade, while the institutional buying from Two Sigma diverges.

Investment Themes

Documents Analyzed

Report based on filing metadata.

US Market Status