Susquehanna Upgrades Arm Holdings, Boosts Price Target to $150 Amid AWS Adoption
Susquehanna upgraded Arm Holdings from Neutral to Positive, raising its price target to $150, which resulted in an 8% increase in the company's shares. Analyst Mehdi Hosseini forecasts long-term earnings per share could reach $4.00 by fiscal 2028, driven by increased data center revenue and a growing customer base for CPUs and XPUs. The upgrade reflects expectations for growth from AWS's Graviton processors and the impact of v9 migration and CSS adoption on Arm's revenue stability.
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Arm Holdings plc's shares rose approximately 8% following an upgrade by Susquehanna from Neutral to Positive, with a new price target of $150. Analyst Mehdi Hosseini projected long-term earnings per share could reach $4.00 by fiscal 2028, driven by increased data center revenue.
Arm's customer base for CPUs and XPUs, along with rising royalty rates, is anticipated to enhance revenue stability. The upgrade considers the impact of v9 migration and CSS adoption on near-term growth. AWS's Graviton processors are mitigating slower smartphone sales attributed to memory shortages, with significant growth opportunities in Arm's data center and networking sectors expected to support above-average EPS growth beyond FY28.
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