Previewing Ambarella Inc’s (NASDAQ:AMBA) second-quarter results, Stifel top analyst Kevin Cassidy is anticipating potential for a revenue beat. As such, Cassidy reiterates a Buy rating on shares of AMBA with a price target of $86, which represents a nearly 26% upside from where the stock is currently trading.

For its second-quarter, Cassidy projects the semiconductor giant will bring in $63 million in revenue, which hits around the midpoint of AMBA management’s guidance and just under the Street’s estimate of $64 million. Cassidy expects AMBA will yield non-GAAP EPS of $0.35, which falls under the Street’s projection of $0.38.

Cassidy notes, “Ambarella management’s 2QFY17 revenue guidance included some caution around the availability of SONY CMOS sensors used in high end surveillance cameras. Recent checks indicate that SONY was able to meet end market demand. This has us cautiously optimistic that Ambarella shipped to unconstrained demand and may beat our and consensus revenue estimates.”

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He concludes, “More importantly for our recommending the AMBA shares, Ambarella’s many other markets remain in high growth mode. We see consumer home security market as the near term catalyst and the automotive market as the longer term catalyst.”

As usual, we like to include the analyst’s track record to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Kevin Cassidy has achieved a high ranking of #25 out of 4,127 analysts. Cassidy upholds a 72% success rate and realizes 23.7% in his annual returns. When recommending AMBA, Cassidy earns 29.9% in average profits on the stock.

TipRanks analytics reveal AMBA as a Buy. Based on 7 analysts polled in the last 3 months by TipRanks, 4 rate a Buy on AMBA, while 3 maintain a Hold. The 12-month average price target stands at $62.75, marking an 8% downside from where the shares last closed.