A top-tier investment bank just upgraded ARM stock to Outperform with a $140 price target, and here's what caught their eye. The recent selloff? Analysts point to two key headwinds—first, worries about smartphone demand getting hammered by elevated memory costs, and second, the ongoing question marks around related-party transactions involving major shareholders. The chipmaker's valuation had taken a hit partly due to these concerns weighing on investor sentiment. Whether these concerns get priced out or stay around remains the real question for traders watching this space. The bank clearly thinks the risk-reward setup is attractive from current levels, but the fundamentals around memory pricing dynamics and governance structure will keep this one in focus.