This Analyst Reiterates Growth Potential In Arm, Boosts Price Target By 30%
Portfolio Pulse from Anusuya Lahiri
Rosenblatt analyst Hans Mosesmann maintained a Buy rating on ARM Holdings Plc (NASDAQ:ARM) and increased the price target from $85 to $110, citing growth potential from generative AI design and licensing momentum. The analyst's optimism is based on recent findings from an Asia trip and SoC IP checks, expecting ARM to benefit from improved licensing and royalty dynamics. Key drivers for ARM's growth include the v9 architecture shift, AI advancements, CPU share gains in PCs and servers, and the new ARM CSS program. The analyst suggests a mid-40s P/E multiple on FY26 EPS of ~$2.50, leading to the revised price target. ARM shares were trading up by 0.82% at $72.89.

December 26, 2023 | 7:09 pm
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ARM Holdings' price target was raised from $85 to $110 by Rosenblatt analyst Hans Mosesmann, who maintained a Buy rating based on strong growth potential in AI design and licensing.
The increase in ARM Holdings' price target is a strong positive signal to investors, suggesting the analyst's confidence in the company's growth trajectory. The focus on AI and licensing, along with the v9 architecture and ARM CSS program, are expected to drive revenue and EPS growth. This could lead to increased investor interest and a potential rise in the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100