Bernstein raises PT for Arm Holdings on strong growth prospects

Armada Mercantile

16/05/2024 12:15

** Bernstein raises PT for semi-conductor maker Arm Holdings
 O9Ty.F ,  ARM.O  to $92 from $72 
    ** "Per results and guidance, we raise our topline for FY25
and beyond...this is mainly driven by higher licensing in both
FY25 and FY26 as well as market share gain within data center,"
- Bernstein
    ** "Data centre and laptop momentum are continuing to show
good signs of progress, and Arm is now progressing CSS for
automotive applications," brokerage said 
    ** Co in May reported Q1 rev. above LSEG estimates but
forecast FY rev. below analysts' expectations
    ** "We find recent commentary of Arm getting into AI chip
design hard to believe given the (1) un-serviced demand they see
in their core business around CSS and (2) recent challenging
experience of trying to expand into services under Softbank,"
brokerage added
    ** 17 of 31 brokerages rate the stock "buy" or higher, 12
"hold" and 2 "sell" or lower; their median PT is $110
    ** YTD, ARM up 51.3%

 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.parmar@thomsonreuters.com))