Benchmark Co. analyst Cody Acree has reiterated their neutral stance on ARM stock, giving a Hold rating today.
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Cody Acree has given his Hold rating due to a combination of factors influencing ARM Holdings PLC ADR’s current market position. The company has shown strong performance with a significant increase in revenue and earnings per share, driven by robust growth across its various end markets such as data centers, smartphones, automotive, and IoT. This positive trend is further supported by the company’s impressive licensing segment growth, which saw substantial increases due to new high royalty percentage agreements.
Despite these encouraging developments, Acree notes that ARM’s current stock valuation is already at a premium, reflecting much of its potential growth opportunities. With the stock trading at a high multiple of future earnings, Acree suggests that the current price may already account for the company’s positive outlook. Therefore, he maintains a Hold rating, indicating that investors might consider waiting for a more favorable valuation before taking a more bullish stance on the stock.
Acree covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Broadcom, and Intel. According to TipRanks, Acree has an average return of 26.0% and a 68.13% success rate on recommended stocks.