Arm upgraded to Market Perform from Underperform at Bernstein

Bernstein upgraded Arm to Market Perform from Underperform with a price target of $100, up from $92. The firm says that with the share price down 40% in four weeks and more confidence in Arm’s mobile royalty growth, it finds the need to review its valuation argument. The analyst has growing confidence that v9 penetration will underpin 40% of royalties by the end of fiscal 2025, and also has more conviction in the company’s market share gains in cloud compute. As such, Bernstein sees a more balanced risk/reward at current share levels.