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HSBC Research Raises Arm Holdings plc (ARM.US) TP to USD245, Expects Quarterly Results In Line
HSBC Research issued a report expecting that chip designer Arm Holdings plc (ARM.US) will deliver results for 4QFY2026 ended March and guidance for 1QFY2027 in line with the broker...
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HSBC Research Raises Arm Holdings plc (ARM.US) TP to USD245, Expects Quarterly Results In Line
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HSBC Research issued a report expecting that chip designer Arm Holdings plc (ARM.US)      will deliver results for 4QFY2026 ended March and guidance for 1QFY2027 in line with the broker and market expectations. The broker forecasts fourth-quarter revenue of USD1.47 billion, in line with market estimates of USD1.47 billion and management guidance of USD1.42 billion to USD1.52 billion. Looking ahead to 1QFY2027, the broker expects revenue of USD1.22 billion, broadly consistent with the market forecast of USD1.24 billion.

Since the "Arm Everywhere" corporate event on March 24, the company has undergone a significant valuation re-rating, with its forecast FY2028 price-to-earnings ratio rising from 45x to the current 66x. The broker believes this reflects investors' willingness to pay a substantial premium for Arm Holdings plc, supported by demand for server CPUs. HSBC Research said ARMs long-term growth outlook remains positive, though upside surprises may be limited in the near term. It maintained a Buy rating and raised the TP from USD205 to USD245, equivalent to a forecast FY2028 price-to-earnings ratio of 79x (previously 68x), noting that server CPU growth potential is redefining the companys valuation. (ha/da)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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