Arm price target raised to $173 from $145 at Evercore ISI

Evercore ISI raised the firm’s price target on Arm to $173 from $145 and keeps an Outperform rating on the shares. Arm’s royalties came in below expectations for the second consecutive quarter, but the firm thinks the long-term story is intact as it argues that Arm is “the dominant processor solution in handsets and IoT” and taking share in client and datacenter compute at the same time that processing demand is growing exponentially. Licensing was stronger than expected over the past several quarters, setting the table for faster royalty revenues three-to-five years down the line, the analyst tells investors in a post-earnings note.