BNP Paribas Exane has raised its rating for Arm (ARM, Financial) to Outperform from Neutral, driven by the company's promising prospects in the application-specific integrated circuit (ASIC) market. The price target has been significantly increased from $110 to $210. This upgrade reflects analyst David O’Connor's view that Arm can achieve substantial earnings growth by capturing just a small portion, approximately 7%, of the ASIC market. Despite recent gains in Arm's stock price, the analyst believes there is still considerable potential for further appreciation, as the full value of Arm's opportunities in the ASIC sector has yet to be recognized. Investors are advised to consider this growth potential as a key factor in their investment decisions regarding ARM.
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 $139.57 with a high estimate of $210.00 and a low estimate of $76.54. The average target implies an downside of 10.96% from the current price of $156.74. 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.
