CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target to $250 from $180, on a higher revised P/E of about 90x our CY 27 EPS estimate of $2.79, above peers given growth prospects. After posting largely in-line Mar-Q results and Jun-Q guidance, we maintain our FY 27 (Mar.) EPS estimate at $2.18 and start FY 28 at $3.06. We believe that ARM's strategic expansion from a pure-play IP company into a silicon provider with the launch of the Arm AGI CPU in late March has the potential to significantly increase its market opportunity. This new product, aimed at the Agentic AI market, has seen explosive initial interest, with customer demand doubling to over $2 billion for fiscal years 2027 and 2028 since its announcement just weeks prior. Supply constraints could limit the trajectory of Arm AGI sales early on, but we think this initiative offers explosive growth potential in our out year estimates (CY 28 through CY 30). Despite $25B revenue and $9 EPS target by decade end, we think valuation (28x on a 2030 basis) already discounts much of this growth.