The stock market may have gotten ahead of itself with the excitement around the initial public offering of Arm Holdings , according to Bernstein.
In addition, we remain more conservative on their ability to deliver increased royalty rates at the pace management is guiding," the Bernstein note said.
ARM 5D mountain Shares of Arm are still up from their IPO price of $51 per share.
Bernstein has a price target of $46 per share for Arm, which is about 24% below where the stock closed on Friday.
With the mobile end market maturing, we think expectations for top line growth are too optimistic," the note said.
Persons:
Bernstein, Sara Russo, — CNBC's Michael Bloom
Organizations:
Arm Holdings, ARM