Arm Holdings (NASDAQ:ARM) stock is a hot topic among traders on Monday after JPMorgan analyst Harlan Sur weighed in on the computer chip company.
The JPMorgan analysts kicked off coverage of ARM stock with an “overweight” rating for the shares. To put that in perspective, the analysts’ consensus rating for ARM is moderate-buy based on 19 opinions.
To go along with that rating, Sur set a price target of $70 per share for the semiconductor company’s stock. That represents a potential upside of about 29% for ARM stock over the next 12 months.
Why the Bullish Stance on ARM Stock?
The JPMorgan analysts said the following about Arm Holdings in a note to clients obtained by CNBC:
“We see Arm driving an 18%+ revenue CAGR [compounded annual growth rate] (40% EPS CAGR) for the next three years on higher IP content (driving higher royalty rates), market share gains against proprietary/legacy compute architectures, and ARM’s growing market penetration into the highest growth segments of the market like auto, IoT, and datacenter compute.”
Investors will keep in mind that ARM stock is still incredibly new to the public market. The company held an initial public offering (IPO) in September with a value of roughly $54 billion.
ARM stock is up slightly as of Monday morning, with only about 162,000 shares changing hands.
Investors looking for more of the most recent stock market news will want to keep reading!
We’re offering insight into all of the hottest stock market news traders need to know about on Monday! Among that is what has shares of LQR House (NASDAQ:LQR), Shift Technologies (NASDAQ:SFT) and Maris Tech (NASDAQ:MTEK) stock on the move today. All of that news is ready to go down below!
More Monday Stock Market News
- Why Is LQR House (LQR) Stock Down 30% Today?
- Why Is Shift Technologies (SFT) Stock Down 86% Today?
- Why Is Maris Tech (MTEK) Stock Up 27% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
