BNP Paribas Exane analyst David O’Connor recently upgraded Arm (ARM, Financial) from a Neutral to an Outperform rating. The price target has been considerably raised from $110 to $210. This change is driven by O'Connor's projection that Arm's involvement in the application-specific integrated circuit (ASIC) market could potentially double its earnings before interest and taxes (EBIT) by capturing just 7% of the market share.
Despite the recent surge in Arm's stock price, O'Connor believes there is still considerable growth potential. The analyst notes that the market has not yet fully recognized Arm's opportunities within the ASIC sector. This suggests further gains for the stock may be on the horizon.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for ARM Holdings PLC (ARM, Financial) is $136.34 with a high estimate of $180.00 and a low estimate of $76.54. The average target implies an downside of 7.32% from the current price of $147.11. More detailed estimate data can be found on the ARM Holdings PLC (ARM) Forecast page.
Based on the consensus recommendation from 38 brokerage firms, ARM Holdings PLC's (ARM, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
