Canaccord Genuity analyst Matthew Ramsay weighed in with some insights on Ambarella Inc (NASDAQ:AMBA) following a sharp sell-off caused by Citron Research’s short thesis report. The analyst maintained a Buy rating on the stock with a price target of $115.00, which represents a potential upside of 22% from where the stock is currently trading.
Ramsay observed, “We maintain our belief Ambarella’s portfolio of highly differentiated application-specific video encode, compression, and analytics processors positions the company for strong sales and earnings growth as HD and UltraHD video capture and compression become increasingly important across several consumer and enterprise markets.We [also] believe Ambarella’s investments in video analytics will prove significantly undervalued long term.”
“Finally, with ramping sales to large customers in core markets and strong sales to emerging growth sectors including drones and consumer security cameras this year, we believe Ambarella remains very well positioned for strong sales and earnings growth. Our investor conversations in recent months revealed many investors waiting for any pullback in AMBA shares to build or add to positions; we believe now is that opportunity.”, the analyst also noted.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matthew Ramsay has a total average return of 13.3% and a 80.0% success rate. Ramsay has a 40.0% average return when recommending AMBA, and is ranked #371 out of 3640 analysts.
Out of the 13 analysts polled by TipRanks, 8 rate Ambarella Inc. stock a Buy, while 5 rate the stock a Hold. With a downside potential of 1.6%, the stock’s consensus target price stands at $92.88.