Arm: Oddo BHF raises target price

(CercleFinance.com) - Oddo BHF has reiterated its 'outperform' rating on Arm Holdings shares, having raised its target price for them from $110 to $130, seeing the stock as remaining the key vehicle for playing the complex architectures required for AI, including in smartphones.


A few days after its quarterly results, the broker said it is confident that Arm would continue to grow by an average of 20% p.a. over the next three years, leading it to raise its forecasts by an average of 4%.

While talking about Arm's valuation often amounts to saying that the share is too expensive at 57x the consensus 12-month EBITDA, Oddo BHF considers it acceptable in view of the growth over the next three years.


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