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Home / Special Reports / ARM Holdings shares up 45% – who could be next?

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

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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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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