Jefferies raises Arm Holdings stock price target to $195

On Thursday, Jefferies analyst Janardan Menon adjusted the price target for Arm Holdings (NASDAQ:ARM) stock, raising it from $170.00 to $195.00, while reiterating a "Buy" rating. With a current market capitalization of $182.1 billion and trading at a P/E ratio of 227.5x, InvestingPro data indicates ARM is currently trading above its Fair Value. Menon forecasts a significant 24% revenue growth for Arm in the fiscal year 2025, aligning with the company’s recent performance of 24.6% revenue growth in the last twelve months, attributing this to a combination of licensing and royalty increases of 31% and 19%, respectively.

Menon anticipates a shift in growth dynamics for Arm Holdings in fiscal years 2026 and 2027. The analyst expects royalties to see a boost from the adoption of the v9 architecture and CoreSight System Software (ETR:SOWGn) (CSS), along with a recovery from the current year’s weaknesses in the Internet of Things (IoT) and networking sectors. The company’s strong financial position, with a current ratio of 4.52 and minimal debt-to-equity ratio of 0.04, positions it well for future growth. Additionally, an increased share of cloud compute is likely to contribute to the company’s growth.

Arm Holdings, which specializes in the design of semiconductor and software architectures, is poised to capitalize on the trend towards lower-cost inferencing at the edge, according to Menon. With an impressive gross profit margin of 96% and strong return metrics, InvestingPro analysis reveals 16 additional key insights about ARM’s potential. This move is expected to further drive the company’s growth and solidify its position in the market.

The analyst’s positive outlook on Arm’s financial performance is supported by the anticipated benefits from the company’s growing contributions in various technology segments. Menon’s revised price target reflects a confidence in the company’s ability to navigate the evolving tech landscape and leverage new opportunities for revenue generation.

Arm Holdings’ stock price adjustment by Jefferies signals the firm’s optimism about the company’s future performance and its strategic positioning to benefit from industry trends. Investors and market watchers will likely keep a close eye on Arm’s progress as it continues to expand its reach in the tech industry.

In other recent news, Arm Holdings has been the focus of various analyst firms following its robust financial performance. HSBC revised the price target for Arm Holdings to $115, maintaining a Reduce rating. The company’s Q3 2025 revenue of $983 million surpassed both HSBC’s and consensus estimates, with licensing revenue being a significant contributor.

UBS reaffirmed a Buy rating for Arm Holdings, maintaining a $215 price target. The firm noted the company’s strong December quarter results and anticipates that AI will continue to drive growth across all key markets.

Evercore ISI raised the price target for Arm Holdings to $202 from $176, reiterating an Outperform rating. The firm highlighted the company’s strong earnings report and its advantageous position in the AI technology sector.

JPMorgan increased the price target for Arm Holdings to $175 from $160, maintaining an Overweight rating. The firm’s outlook is positive, expecting the company to achieve a revenue CAGR of over 20% and an EPS CAGR of over 40% in the coming years.

Lastly, Bernstein maintained an Underperform rating on Arm Holdings with a steady price target of $100. Despite the company’s record Q3 2025 revenues, Bernstein noted that the adoption of Arm’s v9 technology remained at 25% of royalties, below the company’s targeted 40% by the end of FY25. These are recent developments in the company’s financial trajectory and market positioning.

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