William Blair analyst Sebastien Naji has maintained their bullish stance on ARM stock, giving a Buy rating today.
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Sebastien Naji has given his Buy rating due to a combination of factors that suggest ARM Holdings PLC ADR is well-positioned for future growth. Despite the company’s recent results being roughly in line with expectations, the pullback in stock price presents a buying opportunity for investors. ARM’s strategic investments in designing discrete chips and its strong licensing momentum, evidenced by a significant new phone GPU deal and an expanded agreement with SoftBank, indicate potential for long-term growth.
Moreover, while the guidance for the fiscal second quarter remains cautious, with expectations of flat sequential revenue growth, the company’s focus on expanding its market share in the data center and the continued momentum for its v9 and CSS offerings provide optimism. The anticipated 25% year-over-year revenue growth, coupled with ARM’s central role in modern compute infrastructure, supports the Buy rating as the company leverages multiple growth levers to enhance its market position.
In another report released today, Barclays also maintained a Buy rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ARM in relation to earlier this year.