ARM Holdings shares up 45% - who could be next?

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18 July 2016

ARM Holdings shares up 45% – who could be next?

**Shares in ARM Holdings are up 45% this morning*

SoftBank bets on becoming a leader in the 'Internet of Things'
Largest ever takeover of a European tech business
UK companies are now attractive targets for foreign buyers due to weakness in GBP post-Brexit vote. Who could be next?
Broker 12-Month Consensus: 58% Buy, 33% Hold, 9% Sell (full breakdown on request; Bloomberg)
Brokers will now be updating their target prices. Contact us to be kept up to date
CFDs tradeable with just a 5% margin

Technical Observations

Shares currently retracing initial gains
Technicals overbought

With the GBP now significantly weaker post Brexit-vote and US equity markets at record highs, UK companies could be ripe for the picking. Who could be next?

Could US pharma giants come looking for UK targets in AstraZeneca, Shire and GlaxoSmithKline?
Are we set for more sector consolidation in Media/Telecoms with the likes of BT, Vodafone, Sky and ITV?
Are UK supermarkets like J Sainsbury and WM Morrison now attractive propositions for foreign buyers?

Finally, could further M&A help take the UK's UK 100 blue chip index back towards all-time highs 7100?

Graph: ARM Holdings (ARM), daily

ARM Holdings PLC (-)

Given the huge move on ARM shares this morning, all broker target prices are now cosiderably below current levels. Will shares track back towards the average, providing a short opportunity, or will the brokers swiftly upgrade their target prices and look for even more upside?

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Stock description

ARM Holdings designs processors, data engines, peripherals, software, and tools. The Group's solutions are used in a variety of applications, including in the automotive, consumer entertainment, digital imaging, mass storage, networking, security, and wireless industries.(UK 100 )

**Source: Company Press releases, Bloomberg.com

Share 1wk 1m 3m 1yr 2yr 3yr 4yr 5yr

Perf % 45.6 74.4 71.7 67.2 104 87.3 246.5 201.5

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18 July 2016