ARM Holdings PLC (NASDAQ:ARM) shares are trading higher on Tuesday following an analyst upgrade.

• ARM Holdings stock is showing exceptional strength. What’s fueling ARM momentum?

Susquehanna's Chris Rolland on Wednesday raised his rating on Arm Holdings, moving the stock from Neutral to Positive, while keeping his price target unchanged at $150.

The stock carries a consensus Buy Rating with an average price target of $171.80. Recent analyst moves include:

• RBC Capital: Initiated with Outperform (Target $140.00) (Jan. 15)
• BofA Securities: Upgraded to Neutral (Target $120.00) (Jan. 13)

Mixed Technical Indicators For ARM

Arm Holdings is trading 1.1% above its 20-day simple moving average (SMA) but remains 20.2% below its 100-day SMA, indicating a struggle to maintain longer-term strength. The stock’s current position reflects a significant decline over the past year, as it has decreased by 27.72% from its previous highs.

The RSI is currently at 29.27, indicating that the stock is in oversold territory, which could suggest a potential reversal. Meanwhile, the MACD is above its signal line, providing a bullish signal that could support the current upward movement.

The combination of an oversold RSI and a bullish MACD suggests mixed momentum, indicating that while there may be short-term strength, caution is warranted due to the longer-term downtrend.

• Key Resistance: $122.50
• Key Support: $108.50

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Arm Holdings, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 83/100) — Stock is outperforming the broader market.
• Value: Risk (Score: 5/100) — Trading at a steep premium relative to peers.

The Verdict: Arm Holdings reveals a classic “High-Flyer” setup. While the Momentum (83) confirms the strong trend, the extremely low Value (5) score warns that the stock is priced for perfection — investors should ride the trend but use tight stop-losses.

ARM Price Action: ARM Holdings shares were up 6.04% at $113.65 at the time of publication on Wednesday, according to Benzinga Pro.

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