Arm price target raised to $92 from $72 at Bernstein

Bernstein raised the firm’s price target on Arm to $92 from $72 and keeps an Underperform rating on the shares. Arm reported a second consecutive quarter of record revenue ahead of epxtecaitons but once again it was non-royalties that drove the sales beat, the analyst tells investors in a research note. However, the guidance for fiscal 2025 “wasn’t the beat and raise that investors seemed to be looking for,” says Bernstein. It finds recent commentary of Arm getting into artificial intelligence chip design as “hard to believe” given the un-serviced demand it sees in the core business around and recent challenging experience of trying to expand into services under Softbank. Bernstein continues to believe that Arm valuation “looks very full.”