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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Arm Holdings plc is a semiconductor intellectual property (IP) company. The Company develops and licenses IP for various devices worldwide, and it provides development tools that accelerate product development, from sensors to smartphones to servers. Its central processing unit (CPUs) and nomenclature for properties and units (NPUs) include Cortex-A, Cortex-M, Cortex-R, Neoverse, Ethos and SecurCore. It provides processor IP, offering a range of cores to address the performance, power and cost requirements of every device, from Internet of things sensors to supercomputers, and from smartphones and laptops to autonomous vehicles. Its graphics and camera technology drives the visual experience across a range of devices, including mass-market to high-performance smartphones, Android OS-based tablets, and digital televisions. It provides foundation physical IP and processor implementation solutions to address the performance, power and cost requirements for all application markets.
ARM HOLDINGS PLC 
