In a research report issued today, Canaccord Genuity analyst Matthew Ramsay reiterated a Buy rating on Ambarella Inc. (NASDAQ:AMBA) and raised the price target from $86.00 to $115.00, representing a potential upside of 17% from where the stock is currently trading.
The raised price target comes in response to the company’s positive first quarter earnings, posting revenue of $71.0 million and non-GAAP EPS of $0.71 beating Ramsay’s above-consensus estimates of $68.1 million or $0.60.
Ramsay observed, “Following another very strong set of results and guidance well above Street expectations, we maintain our belief Ambarella’s portfolio of highly differentiated application-specific video encode, compression, and analytics processors 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.”
The analyst continued, “Finally, with ramping sales to large customers in core markets and more material contributions from emerging growth sectors including drones and consumer security cameras this year, we believe Ambarella remains very well positioned for strong sales and earnings growth, and upside remains to our significantly increased estimates.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matthew Ramsay has a total average return of 12.9% and a 75.0% success rate. Ramsay has a 43.6% average return when recommending AMBA, and is ranked #413 out of 3610 analysts.