Arm price target lowered to $170 from $200 at Citi

Citi analyst Andrew Gardiner lowered the firm’s price target on Arm (ARM) to $170 from $200 and keeps a Buy rating on the shares. The company’s long-term structural growth drivers are “clearly intact,” with evidence of both strong licensing activity and royalty rate increases in fiscal Q4, but weak visibility into end demand holds Arm back from providing an fiscal 2026 outlook, the analyst tells investors in a research note. The firm says that while management expects customer licensing activity to be little effected by tariffs, its royalties will likely face tariff-driven end demand headwinds. The “weak” near-term outlook pressures fiscal 2026 estimates and likely the shares, but Arm can drive 25%-30% earnings growth annually over the coming years, warranting a premium multiple, contends Citi.