Analyst Joseph Quatrochi of Wells Fargo maintained a Buy rating on ARM Holdings PLC ADR, retaining the price target of $175.00.
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Joseph Quatrochi has given his Buy rating due to a combination of factors influencing ARM Holdings PLC ADR’s current and future performance. One of the primary reasons is the company’s strong licensing revenue, which has shown significant year-over-year growth. This robust performance in licensing is helping to counterbalance the slower-than-expected growth in royalty revenues.
Additionally, ARM’s strategic efforts to expand beyond its existing platform into new areas such as subsystems and chiplets are seen as a positive development. Although there is still some uncertainty regarding the details of this expansion, the potential for growth in these new areas is promising. Furthermore, ARM’s ongoing research and development investments, despite increasing operational expenses, are expected to drive future innovation and growth, supporting the Buy rating.
Quatrochi covers the Technology sector, focusing on stocks such as KLA, Synopsys, and Applied Materials. According to TipRanks, Quatrochi has an average return of 19.1% and a 64.67% success rate on recommended stocks.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $190.00 price target.