Morgan Stanley analyst Lee Simpson has maintained their bullish stance on ARM stock, giving a Buy rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Lee Simpson has given his Buy rating due to a combination of factors that highlight the resilience and potential growth of ARM Holdings PLC. The company reported stronger-than-expected bottom-line results, primarily driven by robust royalty revenues, indicating sustained interest in ARM’s products. Despite an increase in operating expenses, ARM managed to deliver a higher adjusted operating margin for the quarter, showcasing its operational efficiency.
Additionally, ARM’s strategic focus on expanding its engineering capabilities suggests preparation for future demand, particularly in AI, automotive, and data center sectors. The company’s ongoing investment phase, while impacting short-term earnings, is expected to support long-term growth. The positive momentum in AI design and the broadening application of ARM technology further bolster the company’s growth prospects, justifying the Buy rating.
In another report released today, Citi also maintained a Buy rating on the stock with a $170.00 price target.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ARM in relation to earlier this year.