RBC Capital Starts Arm Holdings at Outperform
- Rating
- Outperform
- New coverage
- Target
- $140
- First target
- Outcome
- Reached
- on March 25, 2026
What the analyst said
RBC Capital analyst Srini Pajjuri initiated coverage on Arm Holdings (NASDAQ: ARM) with an Outperform rating and a price target of $140.00.
“We attribute the stock’s recent underperformance to concerns about 1) potential impact on smartphone demand from higher Memory prices, 2) related-party contribution (Softbank ~15% of sales), 3) OpEx growth, possibly related to chiplet/full-SoC initiatives.
However, core Royalty business remains solid driven by multi-year ASP tailwinds from v9/ CSS adoption and Data Center share gains.
Licensing is growing above long- term targets as AI is reinvigorating new chip designs across industries.
We are not overly concerned about RISC-V competition and believe premium valuation is justified given an unparalleled ecosystem, robust pricing power, and longer-term Edge AI opportunity.
Initiate at Outperform.”
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Where the price stands
ARM trades at $206. The 2 analysts who set a target in the last 3 months range from $320 to $641, with a median of $481. This $140 target is 71% below the median, the lowest on the Street.
Since the note ARM has moved +91% (from $108). 12-month window: day 291 of 365, closes on January 14, 2027.
Track record
This call✓ Target reached on March 25, 2026, 2 months after the note.
Firm track recordRBC Capital: 73% of its 11 targets at least a year old were reached within 12 months. Accuracy ranking →
RBC Capital on Arm
RBC Capital price targets on Arm
5 calls from January 14, 2026 to July 30, 2026. The target went from $140 to $340 (+143%). The rating stayed Buy.
- July 30, 2026Target raised from $260 (+31%)Buy$340
- May 7, 2026Target raised from $175 (+49%)Buy$260
- March 25, 2026Target raised from $130 (+35%)Buy$175
- February 5, 2026Target cut from $140 (−7%)Buy$130
- January 14, 2026 This noteEarliest call shownBuy$140
