11:15 AM EST, 11/06/2025 (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 $181 from $162, on a P/E of about 65x our CY 2027 EPS estimate of $2.79, which is well above peers given its greater visibility and higher margin profile. We keep our FY 26 EPS estimate at $1.74 and FY 27 at $2.32. ARM is seeing better-than-expected performance across both its royalty and licensing businesses, driven by better-than-expected smartphone demand as well as momentum across data centers and the IoT space. The most appealing investment rationale and thesis around ARM remains the need for greater power efficiency in data centers amid a massive infrastructure build-out given the physical constraint of power in data center. ARM's more energy-efficient Neoverse platform saw royalties more than double. We are also encouraged by success moving up the value stack with its Compute Subsystems (CSS), which command higher royalty rates. ARM remains well entrenched to opportunities tied to Stargate/OpenAI initiatives, but valuation remains stretched.