Arm price target lowered to $135 from $144 at BofA

BofA analyst Vivek Arya lowered the firm’s price target on Arm (ARM) to $135 from $144 and keeps a Buy rating on the shares. Arm did not give a FY26 outlook, citing delays in deal closures and uncertainty in end-demand due to evolving global tariffs, but based on seasonal commentary, the firm estimates FY26 is headed towards 17%-18% year-over-year sales growth or about $4.7B, which would be about 5% below consensus at $4.93B, or 23% year-over-year growth. However, a calendar year 2025 slowdown is cyclical not structural, as exhibited by an acceleration in Arm’s licensing contract value growing by a mid-teens percentage year-over-year, the analyst tells investors.