UPDATE: DA Davidson Raises Target to $21 on ARM Holdings

DA Davidson reiterates its Underperform rating on ARM Holdings

and raises its price target to $21 from $17 a share as revenue and EPS surpass expectations for the company's Q4. DA Davidson says, ". For Q4'11, on a USD basis, ARM Holdings reported revenue of $217 million (up ~ 13%) versus the $195.3 million we had modeled. The company used an exchange rate of $1.58 USD = 1GBP, which was essentially in line with our exchange rate estimate. Non-IFRS EPS was 3.71p versus our estimate of 2.93p and the Street of 3.03p. For ADR shares, EPS was $0.17, above our consensus and the Street of $0.14 respectively." ARMH closed at $28.88 a share yesterday.