Deutsche Bank Downgrades ARM Holdings (ARMH) to Sell; Overvalued without Catalysts
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Price: $11.39 -2.73%
Rating Summary:
12 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 1 | Down: 4 | New: 5
Rating Summary:
12 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 1 | Down: 4 | New: 5
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Deutsche Bank downgraded ARM Holdings (NASDAQ: ARMH) from Hold to Sell. PT cut to 400p.
Deutsche analyst said, "Despite secular EPS growth drivers, we believe ARM's high valuation will come under pressure as falling smartphone chip prices impact royalty growth, Intel's (Nasdaq: INTC) odds to gradually gain market share in mobile are improving and the Windows-on-ARM ramp could be below expectations. With EPS growth slowing and longer-term estimate uncertainty increasing, we believe ARM can de-rate to a still rich 20x 2014 P/E, closer to its expected 2012-16 EPS CAGR of 13%."
For an analyst ratings summary and ratings history on ARM Holdings click here. For more ratings news on ARM Holdings click here.
Shares of ARM Holdings closed at $27.24 yesterday.
Deutsche analyst said, "Despite secular EPS growth drivers, we believe ARM's high valuation will come under pressure as falling smartphone chip prices impact royalty growth, Intel's (Nasdaq: INTC) odds to gradually gain market share in mobile are improving and the Windows-on-ARM ramp could be below expectations. With EPS growth slowing and longer-term estimate uncertainty increasing, we believe ARM can de-rate to a still rich 20x 2014 P/E, closer to its expected 2012-16 EPS CAGR of 13%."
For an analyst ratings summary and ratings history on ARM Holdings click here. For more ratings news on ARM Holdings click here.
Shares of ARM Holdings closed at $27.24 yesterday.
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