We Recommend Buying ARM Shares, Says Canaccord

In a research report issued yesterday, Canaccord analyst Matthew Ramsay reiterate a Buy rating on ARM Holdings (NASDAQ:ARMH) with a $58 price target, ahead of ARM’s event TechCon event in Silicon Valley this week.

Ramsay wrote, “Given our belief 2H/14 royalty growth expectations were reset to achievable levels following JuneQ results, we recommend buying ARM shares ahead of reaccelerating Y/Y royalty growth rates in 2H/14 and 2015. We maintain our belief ARM is well positioned for strong sales and earnings growth driven by an expanding royalty rate in ARM’s key mobile markets as newer Cortex-A, big.LITTLE, and ARMv8 chip volumes increase, and by market share gains in underpenetrated markets including enterprise networking, server, embedded, and IoT/M2M. Further, we believe ARM’s annual TechCon event in Silicon Valley this week will highlight the size and diversity of these opportunities.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Ramsay has a total average return of -10% and a 15.4% success rate. Ramsay has a -1% average return when recommending ARMH, and is ranked #3143 out of 3326 analysts.

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