02:30 AM EDT, 05/08/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We reduce our 12-month target price to $115 from $130, based on a P/E of about 50x our CY 26 EPS estimate of $2.31, which is well above peers given greater visibility and higher margin profile. We cut our FY 26 (Mar.) EPS estimate to $1.91 from $2.05 and FY 27 to $2.42 from $2.74, reflecting slower revenue growth assumptions after providing Jun-Q that were below our expectations and failed to offer full-year FY 26 guidance. ARM should be able to sustain at least 15% to 20% annualized growth in FY 26 and FY 27, which would mark a deceleration of the 20% plus growth pace seen in the prior two years, partly reflecting tougher comparisons as well as uncertainty tied to tariffs (all indirect impact). We are impressed by the growth in its royalty business, which led increasing penetration of Armv9-based chips (2x the royalty rate of Armv8; only 30% of royalty revenue). We also see the need for greater compute intensity in AI servers leading to additional share gain and upside to ARM's licensing business.