Raymond James analyst Srini Pajjuri reiterated a Buy rating on ARM Holdings PLC ADR (ARM – Research Report) yesterday and set a price target of $175.00.
Srini Pajjuri’s rating is based on a combination of positive indicators for ARM Holdings PLC ADR. The company’s financial results for F3Q have surpassed expectations, with strong growth in royalty revenues driven by the adoption of ARMv9 and the early contribution of compute subsystems (CSS). This trend is anticipated to continue, bolstered by ARM’s expanding presence in data centers and the promising developments in AI technology, which further enhance ARM’s market position.
Additionally, ARM’s licensing revenue has exceeded forecasts, supported by several significant deals. The company’s flexible access licensing program and the successful deployment of ARM solutions in partnership with companies like MediaTek and Microsoft indicate a robust path forward. Srini Pajjuri has adjusted price targets upward, reflecting confidence in ARM’s potential for sustained double-digit growth and its strong ecosystem, despite potential risks such as competition and market adoption rates.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ARM in relation to earlier this year.