Bank of America Analyst Boosts Arm Holdings Price Target by 20%

Bank of America's Vivek Arya raised their price target on Arm Holdings (NASDAQ: ARM) by 20% from $150 to $180 on 2024/06/17. The analyst maintained their Strong Buy rating on the stock.

According to Arya, Arm Holdings is set to benefit from a streamlined transition from its v8 to v9 architecture, a higher total compute solution rate, and a larger market share compared to its peers Intel, AMD, and x86. The analyst also highlighted that more licensees are embracing Arm Holdings' technology due to its power efficiency for both client and data center applications.

In addition to the rating update for Arm Holdings, Arya also raised their price target on Micron Technology Inc by 18.1%, from $144 to $170, while maintaining their Strong Buy rating. This indicates the analyst's positive outlook on Micron Technology's performance.

Arya's rating and price target updates come at a time when 69.2% of top-rated analysts currently rate Arm Holdings as a Strong Buy or Buy, with 30.8% considering it as a Hold. Notably, no analysts recommend or strongly recommend selling the stock, reflecting the overall positive sentiment towards the company.

The consensus forecast among analysts is that Arm Holdings' upcoming year will deliver earnings per share (EPS) of $0.54. If the analysts' predictions are accurate, this would represent an impressive 81.6% increase in yearly EPS on a year-over-year basis.

Investors who have held Arm Holdings stock since the last quarterly report on 2024/03/31 have seen a significant increase in the stock price, with a rise of 28.2%. This positive performance further supports the analyst's strong buy rating and increased price target.

Vivek Arya, the Bank of America analyst behind these rating updates, is ranked in the top 1% out of 4,604 Wall Street analysts by WallStreetZen. With an average return of 23.8% and a win rate of 61.1%, Arya specializes in the Consumer Cyclical and Technology sectors.

Arm Holdings, a subsidiary of Kronos II LLC, is a company that specializes in the development and licensing of central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. Its product offerings include microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. With operations spanning across the United States, the People's Republic of China, Taiwan, South Korea, and internationally, Arm Holdings caters to various markets such as automotive, computing infrastructure, consumer technologies, and the Internet of Things. The company was established in 1990 and is headquartered in Cambridge, the United Kingdom.

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