ARM30 Jan 2012 11:56
Nomura has raised its target price from 570p to 580p for chip designer ARM Holdings but maintained its neutral view of the stock, saying that while the fourth quarter is expected to be 'in-line', there is no real catalyst in the short-term.
In regards to the fourth quarter statement, Nomura said that ARM's management is "likely to be upbeat on ARM’s prospects of share gains in broadening end markets, which are unfortunately unlikely to get the market too excited," the broker said.
"We expect to see some volatility in the stock but with no underlying direction unless further solid data points on any of the above emerge."
However, in the long-term, the broker says its remains encouraged by the opportunities arising from notebooks and servers. However, visibility is still too poor to justify share gains beyond what the stock is effectively pricing, Nomura added.