{"id":2060481,"date":"2023-10-09T13:01:01","date_gmt":"2023-10-09T17:01:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/arms-shares-get-helping-hand-as-ipo-banks-weigh-in-with-ratings\/"},"modified":"2023-10-09T13:03:02","modified_gmt":"2023-10-09T17:03:02","slug":"arms-shares-get-helping-hand-as-ipo-banks-weigh-in-with-ratings","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/arms-shares-get-helping-hand-as-ipo-banks-weigh-in-with-ratings\/","title":{"rendered":"Arm&#8217;s shares receive support from IPO banks&#8217; ratings."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Farms-shares-get-helping-hand-as-ipo-banks-weigh-in-with-ratings%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2060481&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<h2>Arm Holdings Shares Rise\u2062 on\u200c Wall Street Analysts&#8217; &#8220;Buy&#8221; Ratings<\/h2>\n<h3>By Aditya Soni and Roshan Abraham<\/h3>\n<p>October 9, 2023 \u2013 8:08 AM PDT<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-2\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">\n<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-2'); });  \t<\/script>\n<\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<blockquote>\n<p>Shares of \u200cArm Holdings rose\u2063 3% on Monday after a wave \u200cof \u201cbuy\u201d ratings\u200b from Wall Street analysts who said \u200bthat the chip designer\u2019s dominance in the smartphone market and potential for expansion into data centers could power earnings growth.<\/p>\n<p>The flurry of recommendations \u200bmarked the end of the quiet\u2064 period\u2063 for the\u200d nearly 30 banks that underwrote Arm\u2019s initial \u2062public offering, which raised $4.87 billion for owner SoftBank Group\u2064 last \u200dmonth in the biggest listing of the year.<\/p>\n<p>The \u201cbuy\u201d or equivalent ratings,\u200b from brokerages\u200b including J.P.Morgan and Goldman Sachs, are a vote of confidence in Arm\u2019s plan to grow revenue by charging higher royalty fees and\u200d increasing its share of the cloud and\u2063 automotive markets.<\/p>\n<p>Before Monday, only those \u200cbrokerages that did not work on the IPO were allowed to offer recommendations on the stock, \u200dand their opinion was more skeptical due\u200d to concerns \u200dabout the slump in the\u2062 smartphone market and Arm\u2019s diversification efforts.<\/p>\n<p>Three of them had a \u201chold\u201d\u2062 rating on the\u2064 stock and one \u2062\u201cstrong \u2062sell,\u201d \u2064LSEG data showed.<\/p>\n<p>The British company gets most of its revenue\u2064 from \u200bthe smartphone market, in which it has\u200b a 99% share\u200b across Google\u2019s Android and Apple\u2019s \u2062iOS devices.<\/p>\n<p>Goldman \u200dSachs said on Monday it\u200d expected \u201cArm to not only expand on its\u2062 presence in the smartphone market primarily through\u200c higher royalty rates, but to also extend its reach\u2063 across applications to which it is under-indexed.\u201d<\/p>\n<p>The brokerage and others including Citi, Deutsche Bank and TD Cowen set price targets in \u2062the range of \u2064$57 to $85,\u2063 with the most bullish view coming \u200bfrom Rosenblatt Securities. Arm shares last closed\u200b at $54.08, compared with the IPO\u2063 price\u200d of $51.<\/p>\n<p>The stock was last up 2.8% \u200dat $55.56 on Monday, while the Philadelphia Semiconductors index (.SOX) slipped more than 1%.<\/p>\n<p>TD \u2062Cowen said Arm faces some challenges from the weak smartphone market, but\u2064 its current revenue represented an \u201cunder-monetization of\u2062 its importance to the industry\u201d.<\/p>\n<p>Citi predicted that Arm could become one of the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/arms-shares-get-helping-hand-as-ipo-banks-weigh-in-with-ratings\/\" title=\"Arm's shares receive support from IPO banks' ratings.\">fastest-growing \u200clarge chip companies<\/a> with a compounded annual \u200crevenue increase of 18% through fiscal year 2027.<\/p>\n<p>Such growth would benefit SoftBank, which\u2063 told\u200b investors ahead of the Arm IPO \u200bthat it plans to remain the majority owner in the company it considers its crown jewel.<\/p>\n<p>But some brokerages, \u200bincluding \u200cHSBC, urged caution, saying Arm\u2019s shares could \u200bremain range-bound as uncertainty over\u2063 a smartphone market recovery pressures earnings.<\/p>\n<p>At\u200c least 17 brokerages started covering \u2064Arm,\u200c with an average rating of \u201cbuy\u201d and\u2063 a median price target of $63.50.<\/p>\n<p>Reporting by Roshan Abraham in Bengaluru; Editing by Savio D\u2019Souza, Anil D\u2019Silva and Shounak Dasgupta<\/p>\n<\/blockquote>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">\n<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>\n<\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/div>\n<div class=\"entry-content\">\n<p>President Joe Biden, in a stunning reversal, will \u2064bypass numerous federal laws \u200dto continue construction of former President Donald Trump\u2019s border wall, even after swearing to\u200c never do so.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>There\u2019s\u2062 a brand\u200b new song out\u2062 by artist Jimmy Levy called\u00a0 \u201cFreedom.\u201d <\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Congressman Mike Collins tells \u200dOne America\u200c News\u2062 that Georgia\u2019s new Prosecuting Attorneys Qualifications Commission could act to remove \u200cFulton County District Attorney Fani Willis. <\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>The jobs report for September shows that we added \u200d336,000 \u200bjobs, which is above expectations\u2063 of 170,000.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>EU \u2062antitrust regulators are \u200dasking Microsoft\u2019s \u200dusers and rivals whether Bing should\u200c comply with new tough tech rules.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Shares of Arm Holdings rose 3%\u200d on Monday after a wave of \u201cbuy\u201d ratings from Wall Street analysts.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Joe\u2064 Biden\u2019s administration is facing pressure from some lawmakers to restrict American companies from working on a freely \u2063available chip technology widely used in \u2063China.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>OpenAI \u2062is exploring\u2064 making its own artificial intelligence chips and is evaluating a potential \u200cacquisition \u2063target.<\/p>\n<\/div>\n<p> <\/p>\n<h2> What\u200b are the main challenges facing Arm Holdings in the\u2063 smartphone market, and how might \u2062these challenges affect its future earnings<\/h2>\n<p><span>  Arm Holdings, the chip designer, experienced a 3% increase in shares on \u2064Monday following a series of &#8220;buy&#8221; ratings by Wall Street analysts. These analysts believe that Arm&#8217;s dominance in the smartphone market and \u2064its potential \u2063for expansion into data centers \u2062will contribute\u2064 to the company&#8217;s earnings growth.<\/p>\n<p>This surge\u2063 in recommendations coincides with the end of the quiet period for the nearly 30 banks that underwrote Arm&#8217;s\u200c initial public offering (IPO). \u2063The\u200c IPO, which raised $4.87 billion for owner SoftBank Group, was the largest listing of the year. \u2064The &#8220;buy&#8221; or equivalent ratings from brokerages such as J.P.Morgan and Goldman Sachs indicate confidence\u2062 in Arm&#8217;s \u2064strategy to increase revenue \u200cthrough higher royalty fees and a larger market \u200bshare in \u2063the cloud\u200c and automotive sectors.<\/p>\n<p>Previously, only brokerages that did not\u200b participate \u200bin\u200c the IPO were allowed to give recommendations on Arm&#8217;s\u200d stock, and their\u2064 opinions were more skeptical due to concerns about the decline in the smartphone market and Arm&#8217;s diversification efforts. According to LSEG\u200b data, three brokerages had a &#8220;hold&#8221; rating on the stock, and one had a &#8220;strong sell&#8221; rating.<\/p>\n<p>Arm Holdings primarily generates its\u200b revenue from the smartphone \u2063market, where \u200cit holds a \u206299%\u2063 market share across Google&#8217;s Android and \u2064Apple&#8217;s iOS devices. Goldman Sachs expects Arm to expand its presence in the smartphone market by\u2064 increasing \u2062royalty \u200drates\u2063 and extend its reach into other applications \u2063where it is currently under-indexed.<\/p>\n<p>Several brokerages,\u2064 including Citi, Deutsche Bank, and \u2062TD Cowen, have set price targets ranging from $57 to $85. The most optimistic view comes from Rosenblatt Securities. Arm shares closed at $54.08, compared to the \u200dIPO \u2063price of $51. On Monday, the\u200d stock was up 2.8% at $55.56, while \u2064the Philadelphia Semiconductors index slipped more than 1%.<\/p>\n<p>TD Cowen acknowledges that Arm\u200d faces challenges from the weak smartphone market but states that\u2063 its current revenue is\u2064 an under-monetization of its importance to \u200dthe industry. Citi \u2062predicts that Arm\u2063 could become one of\u2063 the fastest-growing large\u2062 chip companies,\u2063 with \u200ba compound annual revenue increase of 18% through fiscal year 2027.<\/p>\n<p>This \u2062growth would benefit SoftBank, which \u2064plans to remain the majority\u2062 owner of Arm\u200c and considers it\u200d a crown jewel. However, some\u2063 brokerages, including HSBC, urge caution, suggesting\u2062 that Arm&#8217;s shares could remain\u2063 range-bound\u200c due to uncertainty about \u200da smartphone market recovery and its impact on\u2063 earnings.<\/p>\n<p>At least 17 brokerages \u200dhave started covering Arm, with \u2063an average rating of &#8220;buy&#8221; and a median price target \u200cof \u2062$63.50.<\/p>\n<p>In conclusion, the recent &#8220;buy&#8221; ratings from Wall \u200bStreet analysts have contributed to the rise in \u2062Arm Holdings&#8217; shares. The company&#8217;s dominant position in the smartphone market and potential for expansion into data\u2062 centers are seen as drivers of future earnings growth. However, some caution remains due to challenges in \u200cthe smartphone market and uncertainty about \u2064its recovery. Overall, the outlook for Arm Holdings appears positive, as\u2063 evidenced by the majority of brokerages giving \u2063a &#8220;buy&#8221; \u2062rating and setting price \u200btargets \u200babove the current share price.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arm Holdings saw a 3% increase in shares as Wall Street analysts gave positive ratings, citing the company&#8217;s strong presence in the smartphone market and potential growth in data centers. (55 words)<\/p>\n","protected":false},"author":1911,"featured_media":2060482,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2060481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2060481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2060481"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2060481\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2060482"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2060481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2060481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2060481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}