Morgan Stanley Puts ARM Shares on 'Short Research Tactical Idea' List Following Concerning Analyst Day

Shares of ARM Holdings

plunged lower midday Tuesday as Morgan Stanley issued a note placing the stock on the firm's "Short Tactical Research" list. The Morgan Stanley list offers a look on possible performance over the near term -- specifically over the next 60 days. Morgan Stanley cited ARM's imprecise price targets offered at its recent investor day. The firm also pointed to ARM's inflated P/E ratio. Morgan Stanley sees a 60-70 percent chance the stock falls in the next 60 days. Shares of ARM initially spiked nearly 3 percent lower, then trended down another 2.5 percent before leveling off Tuesday afternoon. The stock closed at $47.24.