AMBA Stock Analysis:
Deutsche Bank Capital maintains the Hold rating for Ambarella Inc. (AMBA:NSD) and lowers the AMBA stock price target to $60 from $62.
Cowen cuts the AMBA stock price target to $90 from $100 and maintains the outperform rating.
Wells Fargo lowers the price target on Ambarella to $95 from $105 and maintains the Overweight rating on the company.
Morgan Stanley maintains the Overweight rating on the AMBA stock and cuts the target to $105 from $114.
Based on 14 analysts’ projections, the average analyst target price for Ambarella Inc over the next 12 months is USD 95.70. The average analyst rating for Ambarella Inc. is Buy.
Ambarella Inc.’s stock analysis by Stock Target Advisor is Bearish and is based on 1 positive and 8 negative signals. The stock price of Ambarella Inc. was USD 73.93 at the most recent closing.
AMBA stock price changed by +2.44% over the previous week, +33.23% over the previous month, and -63.92% from a year earlier. The consensus Crowd Rating for the AMBA stock is a Buy, with a 12-month Crowd target of $94 per share.
Ambarella (AMBA:NSD) reported quarterly earnings of $0.24 per share, exceeding the $0.19 per share Zacks Consensus Estimate. In the prior year, earnings per share were $0.57. These numbers have non-recurring expenses taken into account.
A 26.32% earnings surprise is represented in this quarterly report. This manufacturer of video compression chips reported earnings of $0.20 per share a quarter ago, which was in line with expectations and came as no surprise. The company has three times outperformed consensus EPS forecasts during the last four quarters.
Ambarella reported revenue for the three months ended October 2022 of $83.1 million, above the consensus estimate by 0.08%. Last year’s revenues were $92.17 million and over the past four quarters, the company has three times exceeded consensus revenue projections.
About Ambarella Inc (AMBA:NSD):
Ambarella, Inc. creates semiconductor video solutions for HD and super HD compression, image processing, and deep neural network processing on a global scale.
In order to deliver high-definition video and image quality, distinct functionality, and low power consumption, the company’s system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip.
Its products are used in robotics and industrial applications, including identification/authentication cameras, robotic products, sensing cameras, and cameras for industrial use, as well as automotive cameras like automotive video recorders, electronic mirrors, front advanced driver assistance system cameras, cabin monitoring systems with cameras for drivers, and central domain controllers for autonomous vehicles.
Through its direct sales team and partners, the company offers its solutions to original equipment manufacturers and original design manufacturers. Santa Clara, California serves as the corporate headquarters for Ambarella, Inc., which was founded in 2004.
Fundamental Stock Analysis:
A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.
Subpar risk-adjusted returns:
In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming in terms of returns. Be careful as you go.
Over the past five years, this company’s total returns have been erratic and higher than the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.
Excessive in comparison to wages:
AMBA stock price is trading above the sector median and at a premium to its peers in terms of price to earnings.
Compared to book value, it is overpriced:
On a price-to-book value basis, AMBA stock is selling at a premium to the median of its peer group.
Overpriced based on cash flow:
On a price-to-cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
Free cash flow that is negative:
In the last four quarters, the company’s overall free cash flow was negative.
Low growth in earnings:
Compared to its sector, this stock’s five-year median earnings growth was lower than average.
Low Growth in Revenue:
Compared to its sector, the stock’s five-year median revenue growth was lower than average.