This Analyst Reiterates Growth Potential In Arm, Boosts Price Target By 30%

Rosenblatt analyst Hans Mosesmann maintained ARM Holdings Plc ARM with a Buy and raised the price target from $85 to $110.

The analyst revised his 12-month price target for ARM upward to $110 from $85 as generative AI class design and licensing momentum have shifted aggressively based on his recent Asia trip and SoC IP checks. 

The implications are for ARM to enjoy incrementally positive licensing and royalty dynamics in quantity and quality (ASPs). 

Themes driving ARM's multi-year roadmap include the v9 architecture shift, AI moving faster to the edge where discrete GPUs are sub-optimal, PC and server ARM CPU share gains, and the new ARM CSS program to lower SoC deployment cost (and increase dollar content). 

Also Read: What's Next for Arm Holdings? Over 70 Engineers Gone in China as Global Strategy Shifts

Given Arm's strong growth outlook, the analyst noted a premium mid-40s P/E multiple is appropriate, applied to FY26 EPS earnings power of ~$2.50 (versus his estimate of $1.85), resulting in his 12-month price target of $110 from his previous $85 mark.

The analyst projected Q3 revenue and EPS of $760 million and $0.25.

ARM Price Action: Arm Holdings shares are trading higher by 0.82% at $72.89 on the last check Tuesday.

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