In a report released today, Andrew Uerkwitz from Oppenheimer maintained a Hold rating on Ambarella (AMBA). The company’s shares closed yesterday at $33.75, close to its 52-week low of $30.
“AMBA reported F3Q19 revenues/EPS of $57.3M/$0.21 vs. Street’s $57.1M/$0.09E and our $57.5M/$0.10. Management narratives are more positive this quarter due to CV design activities and diminishing impact of a declining consumer business. CV chip for professional IP camera will enter volume production late calendar 2019 and expect to contribute material growth starting FY21. To-date, AMBA has 4 CV designs in auto, which are not expected to generate meaningful revenue for another two years. AMBA’s consumer business, consisting mostly of wearable cameras and drones, remains challenged due to loss of key customers and weak underlying markets. Although AMBA’s resilience to calamities (consumer revenue down from 50% to 20% of total sales in two years) deserve praise and respect, we remain sidelined until near- term headwinds fully dissipate.”
According to TipRanks.com, Uerkwitz is a 5-star analyst with an average return of 20.0% and a 55.7% success rate. Uerkwitz covers the Consumer Goods sector, focusing on stocks such as Axon Enterprise Inc, Himax Technologies, and Turtle Beach Corp.
Currently, the analyst consensus on Ambarella is a Moderate Buy with an average price target of $41.20.
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The company has a one-year high of $66.23 and a one-year low of $30. Currently, Ambarella has an average volume of 869.9K.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock.
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Ambarella, Inc. engages in the development and sale of video compression and image processing solutions. Its products include wearable cameras, flying cameras, and automotive video processing solutions. The company was founded by Feng Ming Wang and Leslie D. Kohn on January 15, 2004 and is headquartered in Santa Clara, CA.