FMP
Jun 11, 2024 5:18 PM - Davit Kirakosyan
Arm Holdings (NASDAQ:ARM) shares rose more than 4% intra-day today after Goldman Sachs analysts raised their price target for the company to $143 from $110, while maintaining a Buy rating on the stock.
The analysts expressed increased confidence that Arm will continue to be the preferred architecture for most product categories at the Edge and increasingly in Data Centers. In a world with growing power constraints, they anticipate Arm will gain market share in Server CPUs due to strong momentum with existing customers like AWS (Graviton) and Nvidia (Grace), as well as early success with new customers such as Microsoft (Cobalt) and Google (Axion).
The analysts' positive investment outlook is based on the expected proliferation of Arm-based processors across various cloud platforms and the transition from the v8 to v9 architecture, which involves higher royalty rates. This transition is projected to drive sustained margin expansion and earnings growth.
The analysts forecast a three-year revenue and non-GAAP EPS (excluding SBC) compound annual growth rates (CAGR) of approximately 24% and 30% through 2027, respectively, which significantly exceed the median growth rates within the Semiconductor and Semiconductor Capital Equipment sectors.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...