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BNP Paribas Exane upgrades Arm to Outperform on ASIC potential

BNP Paribas Exane analyst David O’Connor upgraded Arm (ARM) to Outperform from Neutral with a price target of $210, up from $110. The firm estimates application-specific integrated circuit alone could double ARM’s EBIT by capturing only 7% of the addressable market. Despite the recent rally, “significant upside” remains in the shares as Arm’s potential in ASIC is not being fully valued, the analyst tells investors in a research note.

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