Top Wall St brokerages rate Arm's stock a "buy" on earnings potential

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- Big Wall Street brokerages, including J.P.Morgan and Goldman Sachs, started coverage of Arm Holdings with their top ratings a month after its blockbuster market debut, expecting the chip designer to deliver strong revenue and earnings growth.

The IPO had 30 underwriters, all of whom had to wait until Oct. 9 to start coverage as required by industry practice. J.P.Morgan analyst Harlan Sur expects Arm to record more than 18% revenue and 40% earnings per share compounded annual growth rate for the next three years on higher intellectual property content and market share gains.

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