Why Is Semiconductor Company Arm Holdings Stock Trading Higher Monday?

Wells Fargo analyst Gary Mobley initiated coverage on Arm Holdings Plc ARM with an Overweight rating and a $70 price target.

Also Read: Moody's Upgrades SoftBank Group's Outlook To Stable, Citing Improved Leverage And Transparency Post-Arm IPO

The re-rating reflected the chip designer's journey from a tiny acorn to a tall oak.

The price target assumes shares trade at ~33.0x Mobley's FY27 EPS estimate. 

The price target also assumes revenue and adjusted EPS CAGR rates of 18% and 35% to 2027, respectively, and operating margin expansion to 54%.

Price Action: ARM shares traded higher by 5.73% at $58.14 on the last check Monday.

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