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Wells Fargo has initiated coverage on Arm Holdings (NASDAQ:), assigning the company an ‘Overweight’ rating with a price target of $70, highlighting the firm’s strong chip designs and expansion efforts in China. This bullish stance comes as ARM’s stock price soared to nearly $59, surpassing its initial public offering price of around $51. Despite a modest annual performance, especially when compared to the significant gains seen by NVIDIA (NASDAQ:), analysts are optimistic about ARM’s future, particularly given its position away from the regulatory scrutiny often faced by tech companies in China.
In contrast, Morgan Stanley has taken a bearish view on Chegg (NYSE:), downgrading the education technology company to ‘Underweight’ and adjusting its price target down to $9 from the previous $10. The downgrade reflects concerns over slowing web traffic growth and increased competition from AI-driven educational tools. Following Morgan Stanley’s assessment, Chegg’s stock value experienced a 7.5% decline, exacerbating its already weak year-to-date performance. However, this valuation does include a slight uptick in share price recently observed.
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