Arm Holdings (ARM) PT Raised to $180 at Mizuho

Mizuho analyst Vijay Rakesh raised the price target on Arm Holdings (NASDAQ: ARM) to $180.00 (from $160.00) while maintaining a Outperform rating.

The analyst commented: "ARM reported a good DecQ at $983M (cons. $948M) and guided MarQ in line to $1.225B (cons. $1.23B). We believe ARM stock fell AH disappointing investors' expectations of upside guide from recent AI headlines. We highlight: 1) v9 penetration flat q/q at 25%, with v8/v9 both up 23% q/q; 60-70% v9 penetration target unchanged, 2) DecQ Mobile ramp ahead of handsets up ‾4% y/y, Autos in-line, Networking up q/q, and IoT trending better, up y/y, 3) ARM noted 12 CSS customers (50/50 DC/Mobile) and ACV up 1% q/q to $1.27B, 4) MarQ licensing revs expected up ‾60% y/y, with timing, and 5) slightly raised its F25E outlook to $3.99B, up 22% y/y.

Maintain Outperform, Adjust Ests, raise PT to $180. We estimate F26E top line up ‾20% y/y, F27E PEG of ‾2.1x, a discount w/peers at 2.6x; we continue to see ARM well positioned with CSS Datacenter and AI ramps."

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