Deutsche Bank top analyst Ross Seymore weighed in with a few insights on Ambarella Inc (NASDAQ:AMBA), after hosting Ambarella’s CEO Fermi Wang and CFO George Laplante at the 2016 Deutsche Bank Technology Conference on Wednesday, Sept. 14 at the Wynn Las Vegas hotel. Seymore rates Ambarella shares a Hold with a price target of $68.
Seymore noted, “After weathering GPRO headwinds last year, AMBA sees a return to normalization in Sports/Wearables in 2H16 (GPRO/Consumer Sports Camera holiday sell through remains unclear), with continued strength in Drones and Home Security providing potential uplift to growth. In 2017, the company sees significant growth potential led by Drones, largely owing to the lower price points leading to greater unit sales.”
“We believe that AMBA’s video processing technology remains the industry’s best, and continue to see a number of secular growth drivers for the co over the long term. However given the recent strong rebound in its revenues (GoPro snapback) and its share price, we view the stock as close to fair value,” the analyst concludes.
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ross Seymore has a yearly average return of 21.5% and a 76% success rate. Seymore has a 132.9% average return when recommending AMBA, and is ranked #9 out of 4151 analysts.
Out of the 15 analysts polled by TipRanks, 8 rate AMBA stock a Buy, while 7 rate the stock a Hold. With a return potential of 8%, the stock’s consensus target price stands at $74.60.