ARM share price rises after sales of new Apple iPhone 6S and Morgan Stanley note

 
Joseph Millis
The share rise was helped by strong first-weekend Apple iPhone sales
Chipmaker Arm Holdings yesterday saw its share price rise almost 3.5 per cent, helped by news of strong first-weekend Apple iPhone sales, and by recommendations from brokers including Morgan Stanley.

Yesterday was the the first analyst day for new chief financial officer Chris Kennedy, who was poached from easyJet.

Morgan Stanley noted that ARM has a strong balance sheet with £904m in cash and freecash flow yield growing from 3.5 per cent in 2016 to six per cent in 2020.

It said: “[We] believe there is plenty of room for more returns at ARM, given the relative immunity to the semis [semiconductor] cycle. It may be too early for the new CFO to announce a less cautious capital return plan, but we expect the subject to be raised.”

Related articles