On Nov 28, major Wall Street analysts update their ratings for $Ambarella (AMBA.US)$, with price targets ranging from $80 to $100.
Morgan Stanley analyst Joseph Moore maintains with a buy rating, and adjusts the target price from $73 to $90.
Roth MKM analyst Sujeeva De Silva maintains with a hold rating, and adjusts the target price from $60 to $80.
CFRA analyst Angelo Zino downgrades to a sell rating.
Rosenblatt Securities analyst Kevin Cassidy maintains with a buy rating, and adjusts the target price from $85 to $100.
Northland Securities analyst Gus Richard maintains with a buy rating, and adjusts the target price from $75 to $95.
Furthermore, according to the comprehensive report, the opinions of $Ambarella (AMBA.US)$'s main analysts recently are as follows:
Ambarella reported strong October-end quarter results, leading to a positive response in its stock performance. However, concerns have been raised about the company's valuation, particularly questioning the justification for a relatively smaller-scale business where projections heavily rely on long-term growth prospects beyond 2025, which now appear uncertain. Despite a minor increase in sales estimates for 2025 and 2026, there's an expected decrease in pro-forma EPS for these years.
Ambarella's recent quarterly results and projections benefited from new product cycles, according to an analyst. There has been noticeable product strength in both IoT and automotive sectors. The robustness of their technology and the increasing demand for Edge AI are seen as factors that have sufficiently compensated for any challenges faced. Moreover, an anticipated significant advancement in automotive applications by 2026 was highlighted.
Ambarella's third-quarter performance exceeded the midpoint estimates and the fourth-quarter guidance was significantly above expectations. A noted concern was the decrease in auto revenue funnel, which dropped by 8% year-over-year to $2.2 billion from $2.4 billion, primarily due to lowered unit forecasts and delays and cancellations of projects, mainly associated with L2+ programs. Nevertheless, it's anticipated that product ramp-ups will drive stronger than usual seasonal revenue for the fourth quarter.
Following a solid third-quarter performance characterized by surpassing expectations and upward revisions, Ambarella continues to show strong execution in its CV product family pipeline. This success is propelling the company's status as a prominent figure in the expanding AI at the Edge ecosystem.
Here are the latest investment ratings and price targets for $Ambarella (AMBA.US)$ from 6 analysts:
Note:
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