KeyBanc Raises Arm Holdings Price Target to $300

KeyBanc analyst John Vinh raised the price target on Arm Holdings (NASDAQ: ARM) to $300.00 (from $170.00) while maintaining an Overweight rating.

“ARM posted mixed results despite F4Q/F1Q rev/EPS exceeding, as licensing beat, while royalties missed.

Royalty was due to contraction in smartphone TAM due to memory shortages and higher pricing, as ARM guides 20% y/y royalty growth in F1Q.

Growth is being driven by the migration to Armv9, CSS, and Data Center, which doubled in revenues again.

ARM also indicated it sees $2B in demand for its AGI CPU in FY28, vs. its $1B outlook, but is supply constrained currently and unable to meet demand.

Despite mixed results, we raise ests and our PT to $300 due to licensing upside DC drivers.”

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