TECH - Arm Is Strategically Shifting Towards AI Increased Royalties - Analyst Forecasts | Benzinga
Rosenblatt analyst Hans Mosesmann reiterated a Buy rating on Arm Holdings Plc (NASDAQ:ARM), raising the price target from $140 to $180.
The analyst happened to be in Cambridge recently and came away with increased conviction that royalty trends are rising at a faster clip on the heels of more strategic licensing engagements that are increasingly AI-centric.
Mosesmann noted double-digit rates, up from the current mid-single digits, hitting the model by the end of the decade (up from his previous assumption of early next decade), shifting the model aggressively to over 80% royalties.
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ARM’s P/E multiple is supportive of 50%+ levels given secular and royalty shifts at ~10% by the end of the decade, if not sooner, the ...