Arm Stock Has Dropped Back. The Chip Company Isn’t Worth Buying Yet, These Analysts Say.

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Arm Stock Has Dropped Back. The Chip Company Isn’t Worth Buying Yet, These Analysts Say.
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Shares of the chip-design company took off after its IPO. They have given up that gain, but investors should still be wary, according to Susquehanna.

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Arm Holdings arrived on the New York market with a bang at its initial public offering, but investors shouldn’t rush to buy the chip-design stock, according to analysts at Susquehanna Financial Group.

According to Susquehanna’s Christopher Rolland and Mehdi Hosseini, the stock seems to be fully valued. They jointly initiated coverage of Arm with a Neutral rating and share-price target of $48, a figure based on an enterprise value of 15 times Arm’s forecast sales for 2024.

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