JPMorgan Securities calls Wall Street newcomer ARM a "buy"
Shares of chipmaker Arm Holdings (NASDAQ:ARM) are in focus this morning following a string of bull notes, with Wall Street focusing on JPMorgan Securities' praise.
The analyst in question initiated coverage on ARM with an "overweight" rating and a $70 price target -- a 23% premium from the stock's current perch at $54.08 -- citing the company's current dominance in the smartphone market. Further, the brokerage commented on the company's potential for expansion into data centers and auto, as well as higher future revenue and earnings growth.
In addition to JPMorgan, Goldman Sachs initiated coverage with a "buy" rating and $62 price target; Citigroup initiated with a "buy" rating and $65 price target; and TD Cowen initiated with an "outperform" rating and $63 price target. No less than four additional brokerages initiated bullish coverage and price objectives, though HSBC now calls Arm stock a "hold," and set its target at $57."
Since its Sept. 14 debut on the Nasdaq, ARM has worked lower on the charts, but JPMorgan's bull note implies a roughly 30% upside for the shares. Arm stock still sports a roughly 1% lead this quarter, notching wins over the last two weeks.