Goldman Sachs Upgrades ARM Holdings (ARMH) to Conviction Buy

Goldman Sachs upgraded ARM Holdings (NASDAQ: ARMH) from Buy to Conviction Buy.

Analyst Alexander Duval said, "ARM has underperformed our EU Tech coverage universe by 14% ytd. While this has been driven by concerns about smartphone royalties, we see 1Q/2Q weakness as temporary, rather than structural; maintain Buy and add to CL, ahead of what we anticipate will be a better 2H. We see the smartphone inventory correction as substantially resolved, and expect highend smartphone launches incorporating ARM v8 designs to benefit royalties (while noting easing yoy comps). Continuing strong licensing momentum augurs well for the opportunity in non-mobile, where we see ARM as one of the prime European Technology beneficiaries of the Internet of Things (IoT)."

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 $45.86 yesterday.

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