In a report released today, Gus Richard from Northland Securities maintained a Buy rating on Ambarella (AMBA), with a price target of $45. The company’s shares closed on Friday at $44.50.
Richard said:
“We understand 3-5 are moving into mass production. The potential US sales ban to Hikvision and Dauha (roughly 20-25% of revenue) is also causing these customers to pull in orders forward into FY20:Q2 (Jul). If trade issues break in AMBA’s favor the Company could gain substantial market share. We estimate that their professional camera revenue was $90M in CY18. With its strong product offering, a 2x increase in selling price over the prior generation of chips, and diminished Huawei we estimate FY21 (Jan) AMBA’s professional camera revenue could be $200M-$250M. Assume the rest of the business declines by 10% our FY21/CY20 revenue estimate would be $315M-$365M substantially above our current estimate of $255M.”
According to TipRanks.com, Richard is a 5-star analyst with an average return of 23.1% and a 67.7% success rate. Richard covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, SolarEdge Technologies, and Akoustis Technologies.
Ambarella has an analyst consensus of Hold, with a price target consensus of $48.25, an 8.4% upside from current levels. In a report issued on July 2, Cowen & Co. also reiterated a Buy rating on the stock with a $54 price target.
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Based on Ambarella’s latest earnings release for the quarter ending April 30, the company reported a quarterly GAAP net loss of $17.31 million. In comparison, last year the company had a GAAP net loss of $10.01 million.
Based on the recent corporate insider activity of 59 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.
