'The world increasingly needs Arm,' says KeyBanc: 4 big analyst picks
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: a buy initiation at Arm Holdings, and upgrades at Nkarta, Elastic , and Hudson Pacific Properties.
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Arm Holdings started with Overweight at KeyBanc
KeyBanc began coverage on Arm Holdings (NASDAQ:ARM) with an Overweight rating and a price target of $65.00, as reported in real time on InvestingPro.
The initiation is the latest of many buy-equivalent ratings stamped on the chipmaker after its IPO last month, with a raft of brokerages starting coverage last week - including BofA Securities, TD Cowen, Goldman Sachs, and Citi - and most of them assigning buy-equivalent ratings.
KeyBanc suggests that Arm is poised to thrive from the ongoing semiconductor design trends, especially the growing complexity of chips. The analysts say this is is due to the continuous evolution of compute chip structures, such as chiplet/tile-based and heterogeneous designs, which increasingly compensate for scaling challenges as a result of the demise of Moore's Law.
“ARM stands to benefit as computing requirements across mobile, data center, auto, and IoT become increasingly more demanding and complex," wrote the analysts. "This will only increase the industry's reliance on Arm IP, ultimately resulting in royalty rate expansion and market share gains."
Shares of Arm were off 1.1% to $57.71 in the premarket.
Nkarta earns an upgrade after announcing a partnership with Lupus Therapeutics
Raymond James upgraded Nkarta (NASDAQ:NKTX) to Strong Buy from Outperform on Tuesday, with a price target of $13.00, following the company's announced partnership with Lupus Therapeutics to support the evaluation of Natural Killer (NK) cell therapy in Lupus Nephritis.
Shares jumped more than 112% Tuesday on the news.
“Lupus nephritis presents a clear market opportunity for NKX019 where the cell product persistence debate favoriting T cells (in oncology) is less relevant given the lack of requirement for cell persistence in autoimmune indications,” wrote Raymond James.
Elastic and Hudson Pacific upgraded
Elastic (NYSE:ESTC) shares rose more than 1% pre-market today after Jefferies upgraded the company to Buy from Hold and raised its price target to $100.00 from $75.00.
Mizuho Securities upgraded Hudson Pacific Properties (NYSE:HPP) to Neutral from Underperform with a price target of $7.00 (from $10.00).
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