Arm price target raised to $170 from $150 at Citi

Citi raised the firm’s price target on Arm to $170 from $150 and keeps a Buy rating on the shares. The company reported “strong” fiscal Q1 results, generating materially higher than expected licensing revenue, driven by customer need for high performance cores to future proof their portfolio for artificial intelligence, the analyst tells investors in a research note. The firm says royalty weakness in the near-term is a headwind, but it advises to look through the cyclical impact. Given the long-term nature of Arm’s business, the upside to licensing should support stronger royalty revenue in future years, contends the firm.