Arm: Oddo BHF raises its target price

(CercleFinance.com) - Oddo BHF reiterates its 'outperform' rating on Arm Holdings, with a price target raised from $110 to $130, seeing the stock as remaining 'the key vehicle to play the complexification of architectures required for AI, including in smartphones'.


A few days after the quarterly publication, the research firm is comforted by the fact that Arm should continue to grow by an average of 20% a year over the next three years, leading it to raise its forecasts by an average of 4%.

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

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