Arm Holdings (ARM) PT Raised to $174 at Goldman Sachs

Goldman Sachs analyst Toshiya Hari raised the price target on Arm Holdings (NASDAQ: ARM) to $174.00 (from $159.00) while maintaining a Buy rating.

The analyst comments: "Arm reported solid FY3Q (December) results as revenue upside across the Licensing and Royalty businesses translated into a 15% non-GAAP EPS (excl. SBC) beat. While the penetration of the v9 architecture is proceeding slower than previously anticipated (note v9 as a % of the company's Royalty business has been flat at 25% for three consecutive quarters), on the positive side, we have been encouraged by the a) strong traction in its Compute Sub-Systems (CSS) business, b) volume growth in Cloud Infrastructure (i.e. Arm-based server CPUs) and c) better-than-feared near-term volume trends in IoT. Looking ahead, into FY2026, we see the combination of robust Licensing revenue growth, a cyclical recovery in volumes and a sustained increase in royalty rates, driving strong double-digit earnings growth at the company level."

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