Wells Fargo Lowers Arm Holdings Price Target to $280

Wells Fargo analyst Joe Quatrochi lowered the price target on Arm Holdings (NASDAQ: ARM) to $280 (from $350) while maintaining an Overweight rating.

“Arm’s F1Q27 was mixed: 1) Positive rpt’d royalty upside; 2) lower F2027 Royalty growth expects; offset by stronger non-SB license growth; 3) AGI update of >$2B of demand & raised confidence to deliver >$1B in F27 + F28; await detail in F3Q27.

PT $280 Updated Estimates. We expect limited change to consensus estimates.

We move our F2027, F2028, F2029 revenue / EPS ests to $6.00B / $2.21, $7.88B / $3.00, and $10.20B / $3.73 (vs. prior $5.91B / $2.08, $7.88B / $3.02, and $10.10B / $3.65).

Given multiple compression across semis, we reduce our PT to $280 (was $350) – 93x P/E & 71x EV/EBITDA our F2028E ests. as we expect shares to be driven by AGI momentum / ability to meet demand.”

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