Ambarella Inc. (AMBA) Price Target Raised By 12% At Canaccord After ‘Strong’ Earnings Results


Canaccord Genuity analyst Matt Ramsay came out today with a favorable report on Ambarella Inc. (NASDAQ:AMBA), after the company reported Q4/F’15 results with revenue of $64.7 million and non-GAAP EPS of $0.68, well above Ramsay’s estimates of $58.8 million/$0.45.

The analyst reiterated a Buy rating on the stock and raised the price target to $74 (from $66), which represents a potential upside of 17% from where the stock is currently trading.

Ramsay noted, “Ambarella reported very strong Q4/F’15 results, materially beating our and Street expectations for revenue, margins, and EPS. In addition, helped by the addition of new action camera customer Xiaomi, April quarter guidance was also materially higher than expected. Overall, we continue to believe Ambarella’s portfolio of highly differentiated application-specific video encoding microprocessors positions the company for strong sales and earnings growth as HD and UltraHD video capture and compression become increasingly important across several growing consumer and enterprise markets. Further, we believe Ambarella’s investments in video analytics will prove significantly undervalued and provide sustained long-term differentiation and pricing stability.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Ramsay has a total average return of 10.3% and a 83.8% success rate. Ramsay has a 9.2% average return when recommending AMBA, and is ranked #685 out of 3504 analysts.

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