Wells Fargo Starts Arm Holdings (ARM) at Overweight

Wells Fargo analyst Joe Quatrochi initiates coverage on Arm Holdings (NASDAQ: ARM) with a Overweight rating and a price target of $155.00.

The analyst comments "We think Arm can deliver upside to consensus estimates driven by a transition to v9 / CSS solutions with higher royalty rates, coupled with modest share gains for Arm-based CPUs (NT focus = PCs & cloud infra). Initiate OW; $155 PT. Arm V9 & CSS Upgrade Drives Royalty Upside? While we're focused on a recovery in semi demand, we think Arm could deliver F2026 royalty rev upside via higher mix of v9 & initial CSS adoption given higher royalty rates. Based on our analysis assuming flat y/y Arm-based semi ship, we'd be left to estimate the Street implying F2026 v9 & CSS royalty mix in the high-40% & HSD% range. We think a modest recovery in Arm-based semi ship could deliver slight upside to the Street's F2026 royalty rev est."

For an analyst ratings summary and ratings history on Arm Holdings click here. For more ratings news on Arm Holdings click here.

Shares of Arm Holdings closed at $133.14 yesterday.

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