Arm plc(US:ARM) Zhi Tong Cai Jing·2025-07-29 07:56Group 1 - Morgan Stanley raised Arm's target price from $150 to $194, maintaining an "Overweight" rating, highlighting the potential strategic shift towards self-developed chips as a transformative opportunity for the company's long-term development [1] - The possibility of Arm's transition to self-developed chips has become a central topic of discussion among investors, with increasing market attention driving Arm's stock price above the previous target [1] - Analysts from Morgan Stanley noted active discussions regarding Arm's chip projects during a recent visit to Taiwan, despite lacking concrete evidence of nearing tape-out, indicating strong market momentum as investors await clearer information from the company [1] Group 2 - Morgan Stanley remains optimistic about Arm's long-term prospects due to diversification in value capture opportunities, including potential self-developed chips, and adjusted forecasts ahead of the company's Q1 earnings report on July 30 [2] - The firm raised its 2025 licensing revenue growth expectation from 8% to 11%, primarily due to the easing of restrictions in the Chinese market, while lowering the 2026 royalty revenue growth forecast from 22% to 20% due to weak consumer electronics demand [2] - Operating expense expectations were increased, with a projected compound annual growth rate of about 12% over the next two years, reflecting the company's plan to expand its engineering team from approximately 6,900 to over 10,000 in the next 2-3 years; adjusted EPS for 2027 is expected to be $2.94, with revenue forecasted at $6.43 billion [2]