11:50 AM EDT, 07/03/2025 (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 raise our 12-month target price to $162 from $115, reflecting a higher revised P/E of 70x our CY 26 EPS view. We keep our FY 26 (Mar.) EPS at $1.91 and FY 27 at $2.42, both above consensus as we see upside given recent improving trends across the server and more cyclical markets. We note that ARM's valuation has been extremely volatile since its IPO nearly two years ago, trading near the upper end of its range since then. Although a majority of ARM's revenue is still tied to the lackluster smartphone market, we think it can grow at least at a 15%-20% pace over the next three years, given its greater emphasis on the cloud and automotive arenas. Greater compute intensity related to AI should drive potential upside to ARM's revenue trajectory, supporting the transition to its most advanced/higher-priced v9 architecture. We think a key risk is the high ownership stake from SoftBank (about 90%) and the investor looking to sell a large position (more enticing at these higher multiples).