Stryker shares tumble despite strong Q2 results and raised guidance
On Monday, Loop Capital increased the price target for Arm Holdings (NASDAQ:ARM) to $195.00, up from the previous target of $180.00, while maintaining a Buy rating on the company’s shares. Currently trading at $162.51 with a market capitalization of $171.29 billion, Arm has shown strong momentum. The adjustment follows the announcement of Arm’s December quarter earnings per share (EPS) on Sunday, February 5, 2025.
Arm Holdings reported strong revenue and EPS for the December quarter, exceeding expectations, with impressive revenue growth of 25.73% year-over-year. According to InvestingPro analysis, the company maintains a GOOD financial health score, supported by strong profitability metrics. Despite this performance, the company’s guidance for the March quarter was only in line with projections, which curbed any significant rise in the stock price following the earnings report.
The research firm remains optimistic about Arm Holdings’ prospects, anticipating a very bullish narrative for the fiscal year 2026. This outlook is expected to be presented during the company’s March quarter EPS call in April. Loop Capital’s analyst highlighted the company’s solid performance in the December quarter as the basis for the raised price target.
Arm Holdings, known for its semiconductor and software design, continues to be a strong player in the technology sector. The company’s financial results and forward-looking guidance are closely watched by investors seeking to understand the tech industry’s growth trajectory.
The new price target of $195.00 represents Loop Capital’s confidence in Arm Holdings’ ability to maintain its momentum and capitalize on market opportunities in the upcoming fiscal year. While trading at a high P/E ratio of 221, InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 14 additional exclusive insights available to subscribers. The firm’s sustained Buy rating suggests that they believe the stock still has significant room for appreciation.
In other recent news, ARM Holdings (LON:ARM) has seen a series of positive adjustments in its stock target by multiple research firms. Guggenheim maintained a Buy rating on ARM and raised its price target to $180, following ARM’s third fiscal quarter of 2025 (F3Q25) financial results where the company exceeded consensus estimates on several key performance indicators. Rosenblatt Securities also increased its price target on ARM’s stock to $225, reflecting confidence in the company’s growth trajectory and profitability. Mizuho (NYSE:MFG) Securities reiterated an Outperform rating for ARM’s stock and raised its price target to $180 citing ARM’s strong positioning for continued growth, particularly in the CSS Datacenter and AI sectors.
Jefferies analyst Janardan Menon raised the price target for ARM Holdings stock from $170.00 to $195.00, forecasting a significant 24% revenue growth for ARM in fiscal year 2025. This is attributed to a combination of licensing and royalty increases. Meanwhile, HSBC analyst Frank Lee revised the price target for ARM Holdings stock, increasing it to $115. Despite the raised price target, the firm maintained a Reduce rating on the stock.
These recent developments highlight the growing confidence in ARM Holdings’ financial performance and strategic positioning in the evolving tech landscape. The adjustments reflect the firm’s ability to navigate the ever-changing tech industry and leverage new opportunities for revenue generation.
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