Daiwa Capital Markets Downgrades ARM to Neutral Despite Price Target Increase

On a recent Friday, ARM (NASDAQ:ARM), renowned for its CPU product architecture and related technologies, faced a shift in market perception as Daiwa Capital Markets revised its rating from 'buy' to 'neutral'. Although this represents a more conservative stance, the firm surprisingly elevated its target price for ARM's stock from the previous $63.00 to a robust $130.00, as detailed in a report by Briefing.com.

Analyst Opinions Show Mixed Sentiments

ARM's position in the market has seen varied perspectives from different research entities. Deutsche Bank transitioned its rating from 'buy' to 'hold' while raising the price objective modestly from $60.00 to $70.00. In contrast, Susquehanna labeled ARM as 'neutral' but increased its price objective substantially from $48.00 to $85.00. KeyCorp and Barclays both assigned an 'overweight' rating to ARM, setting higher price objectives of $120.00 and $105.00 respectively. MarketBeat's consensus conveys a 'Moderate Buy' rating for ARM, with a common target price around $78.77, despite the mixed views ranging from 'sell' to 'buy' among analysts.

ARM's Financial Performance

ARM commenced trading on the noted Friday at $133.68, far exceeding its 50-day moving average of $78.07. With a significant 12-month low at $46.50 and high at $164.00, ARM's recent quarterly earnings report displayed a positive outcome, with earnings per share (EPS) of $0.29 exceeding estimations by $0.04. The quarter's revenue also surpassed expectations, reaching $824 million against the forecasted $762.5 million, marking a 13.8% year-over-year increase. Analysts project that ARM's EPS will stand at $1.2 for the current financial year.

Investment Actions by Hedge Funds

In recent financial movements, several institutional investors and hedge funds have adjusted their stake in ARM. Notable new investments were made by High Falls Advisors Inc, Midwest Professional Planners LTD., Vident Advisory LLC, Nvidia Corp, and Fullerton Fund Management Co Ltd with millions of dollars allocated to ARM shares during the fourth quarter.

About ARM

Arm Holdings plc is a leader in designing CPU products and related technologies, providing essential components and system IPs for semiconductor companies and original equipment manufacturers across the globe. The company continues to innovate with offerings that include microprocessors, systems intellectual property, graphics processing units, physical IP, and other related services.

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