Bank of America Arm

BofA Securities Lowers Arm Holdings Price Target to $260

1 min read Reproduced verbatim
Rating
Neutral
Unchanged
Target
$260
from $460 (−43%)
Outcome
Reached
on August 4, 2026
Bank of America and Arm logos

What the analyst said

BofA Securities analyst Vivek Arya lowered the price target on Arm Holdings (NASDAQ: ARM) to $260 (from $460) while maintaining a Neutral rating.

“ARM posted modestly better JunQ/SepQ, driven by continued share/content gains in AI/data center, offset by n-t smartphone weakness.

Over the long-term, we believe ARM is well positioned to benefit from rising demand for agentic CPUs (see our recent server CPU primer), across both IP (key CSS products Axios/Cobalt ramping in FY27-28 and increasing content/core over time) and its new AGI chiplet CPUs.

However, we believe investor expectations remain high around both, and overall supply constraints cap any near-term upside.

We modestly raise FY27-28E ests on continued Licensing growth and modestly higher AGI supply outlook in FY28, but reiterate Neutral as we see the stock as already fairly valued at current AGI CPU shipment/share outlook.

Lower PO to $260 from $460, given recent re-rating in peer multiple, based on sum-of-parts that values IP business at 2.0x PEG (~$203) and chips business at 21x PE (~$57).”

Disclaimer
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.

Where the price stands

ARM trades at $203. The 2 analysts who set a target in the last 3 months range from $320 to $641, with a median of $481. This $260 target is 46% below the median, the lowest on the Street.

Since the note ARM has moved −10% (from $225). 12-month window: day 96 of 365, closes on July 30, 2027.

Track record

This call✓ Target reached on August 4, 2026, 5 days after the note.

Firm track recordBank of America: 82% of its 49 targets at least a year old were reached within 12 months (#8 of 26 firms). Accuracy ranking →

Earnings reactionOne of 12 notes after Arm’s Jul 29 results: 2 raised · 7 cut · 2 kept. See every call →

Bank of America on Arm

Bank of America price targets on Arm

7 calls from January 13, 2026 to July 30, 2026. The target went from $120 to $260 (+117%). The rating stayed Hold.

Bank of America targetARM share price
  1. July 30, 2026 This noteTarget cut from $460 (−43%)Hold$260
  2. June 23, 2026Target raised from $335 (+37%)Hold$460
  3. June 11, 2026Target raised from $245 (+37%)Hold$335
  4. May 7, 2026Target raised from $155 (+58%)Hold$245
  5. March 25, 2026Target raised from $140 (+11%)Hold$155
  6. February 24, 2026Target raised from $120 (+17%)Hold$140
  7. January 13, 2026Earliest call shownHold$120
Share

Other analysts on Arm

StoneXHold Kept rating Oct 26 Piper SandlerBuy Initiated coverage Sep 10 $320 Raymond JamesBuy Raised price target +13%, kept rating Aug 25 $641from $565 RosenblattBuy Cut price target −7%, kept rating Jul 31 $250from $270 UBSBuy Cut price target −11%, kept rating Jul 30 $320from $360
Share on
Price Target is an archive of Wall Street analyst research, published for informational purposes only. Nothing on this site is investment advice, a recommendation, or an offer to buy or sell any security. Analyst ratings and price targets are the opinions of the issuing firms, not of Price Target. Always do your own research or consult a licensed financial adviser.