Evercore ISI Reiterates Outperform on Arm Holdings, $326 PT
Evercore ISI analyst Mark Lipacis reiterated an Outperform rating and $326 price target on Arm Holdings (NASDAQ: ARM).
“We Still Buyers of ARM, after it posted JunQ EPS that beat by 12% and provided an outlook for SepQ EPS that was 7% above.
The company downticked its outlook for royalties to increase in the high-teens % this FY from its original expectations for 20%, due in part to weakness in smartphones that has spread from low-end SKUs to the mid-range and even upper tiers.
The weakness in smartphone royalties is being offset by strength in data center royalties and better licensing, and the company expects FY27 revenues of $6bn, slightly above consensus.
We continue to view ARM as a key beneficiary of our “CPU Renaissance” thesis, and forecast base/bull 2030 EPS power of $21/$40.
Our price target is $326, based on P/E ratio of 23x our 2030 base case EPS of $20.74, discounted back four year.”
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
