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Evaluating Ambarella: Insights From 7 Financial Analysts

Author: Benzinga Insights | June 11, 2024 08:01am

7 analysts have expressed a variety of opinions on Ambarella (NASDAQ:AMBA) over the past quarter, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 1 2 1 0
Last 30D 1 0 0 0 0
1M Ago 2 1 2 0 0
2M Ago 0 0 0 1 0
3M Ago 0 0 0 0 0

Analysts have set 12-month price targets for Ambarella, revealing an average target of $70.29, a high estimate of $90.00, and a low estimate of $50.00. This current average represents a 3.33% decrease from the previous average price target of $72.71.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Ambarella by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Kevin Cassidy Rosenblatt Maintains Buy $85.00 $85.00
Gary Mobley Wells Fargo Lowers Equal-Weight $55.00 $65.00
Suji Desilva Roth MKM Lowers Neutral $60.00 $65.00
Joseph Moore Morgan Stanley Raises Overweight $67.00 $57.00
Quinn Bolton Needham Maintains Buy $90.00 $90.00
Kevin Cassidy Rosenblatt Maintains Buy $85.00 $85.00
Vivek Arya B of A Securities Lowers Underperform $50.00 $62.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Ambarella. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Ambarella compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Ambarella's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Ambarella's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Ambarella analyst ratings.

All You Need to Know About Ambarella

Ambarella Inc is a developer of semiconductor processing solutions for high-definition video capture, sharing, and display. The firm's solutions are sold to original design manufacturers and original equipment manufacturers to be designed for use in infrastructure broadcast encoders, wearable device cameras, automotive cameras, and security cameras. Ambarella's system-on-a-chip designs, based on its proprietary technology platform, are highly configurable to applications in various end markets. Geographical presence in Taiwan, Asia Pacific, Europe, North America, and the United States. The firm derives the majority of its revenue from Taiwan.

Breaking Down Ambarella's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Ambarella's revenue growth over 3 months faced difficulties. As of 30 April, 2024, the company experienced a decline of approximately -12.34%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ambarella's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -69.63%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Ambarella's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -6.8%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Ambarella's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -5.85%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Ambarella's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: AMBA