In a report published Wednesday, Piper Jaffray analyst Auguste Gus Richard upgraded ARM Holdings ARMH from Neutral to Overweight, and reiterated the $42.00 price target.
In the report, Piper Jaffray noted, “ARMH shares are down 28% over the last 5 weeks and 15% from where we downgraded it earlier this year. While we believe the shares had gotten ahead of themselves, we believe the market is starting to become overly pessimistic. We believe ARM's fundamentals will continue to outperform the overall semi market as the company remains the processor architecture of choice in an increasing array of markets. Moreover, we expect licensing revenue to resume growth with the recent announcement of the Cortex A12. Given the strong current demand for mobile products, we expect upside to ARM's royalty revenue in the current quarter. Move rating to OW and maintain $42 PT.”
ARM Holdings closed on Tuesday at $36.61.
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