Analysts rate Ambarella Inc. (AMBA:NSD) with a Strong Buy rating and a $139 target

STA Research
by: STA Research
Ambarella Inc.

Based on the Ambarella stock forecast from 13 analysts, the average analyst AMBA stock price target is USD 139.96 over the next 12 months. Ambarella Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Ambarella stock forecast is Bearish, which is based on 1 positive signal and 9 negative signals. At the last closing, Ambarella stock price was USD 84.50Ambarella stock price has changed by +2.83% over the past week, -2.05% over the past month and -18.41% over the last year.

About Ambarella Inc. (AMBA:NSD):

Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra-HD compression, image processing, and deep neural network processing worldwide. 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 for delivering video and image quality, differentiated functionality, and low power consumption. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

 

What we like:

Positive cash flow:

AMBA stock had positive total cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns:

Ambarella stock forecast shows that the company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for AMBA stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns:

Ambarella stock forecast shows that the company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

AMBA stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

AMBA stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

AMBA stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Negative free cash flow:

AMBA stock had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

AMBA stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

AMBA stock has shown below median revenue growth in the previous 5 years compared to its sector

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.