Bank of America analyst Vivek Arya has revised the price target for Arm Holdings (ARM, Financial) to $144 from a previous $180 while maintaining a Buy rating. This adjustment comes as the firm analyzes the potential impact of tariffs on U.S. chip vendors.
Despite expecting Q1 results to exceed initial projections due to what Arya describes as an initially conservative outlook and an improved demand environment spurred by tariff-related stockpiling, there are concerns about future sales. Bank of America outlines that, in a scenario of moderate tariffs, sales might decrease by 4% to 6% on average for the group. In a more severe tariff scenario, sales could potentially decline by 9% to 12% in 2025 and 2026.
Furthermore, these scenarios suggest that earnings per share (EPS) could see a reduction of 12% to 13% in a moderate tariff situation. In response to these uncertainties, the firm has adjusted its targets across the semiconductor sector to account for the potential economic impact.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 29 analysts, the average target price for ARM Holdings PLC (ARM, Financial) is $158.43 with a high estimate of $225.00 and a low estimate of $75.34. The average target implies an upside of 52.63% from the current price of $103.80. More detailed estimate data can be found on the ARM Holdings PLC (ARM) Forecast page.
Based on the consensus recommendation from 37 brokerage firms, ARM Holdings PLC's (ARM, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
