Ambarella (AMBA) Beats and Raises, Reiterate Sector Weight at KeyBanc

KeyBanc analyst John Vinh reiterated a Sector Weight rating on Ambarella (NASDAQ: AMBA) after the company beat results and guidance on 4 key issues 1) HikVision/Dahua continues to build inventory in response to Entity List concerns; 2) increasing restocking demand from Chinese security OEMs; 3) share gains vs. HiSilicon outside of China; and 4) auto video recorder ramp. F2Q revenue of $56.4M was higher the consensus estimate of $52.0M. F3Q revenue is expected to be $65.0M at the midpoint, also higher than the consensus estimate of $56.5M.

The analyst stated "Demand recovery at HikVision/Dahua and inventory building in response to concerns of a ban were key drivers of strong results/guidance. Meanwhile, AMBA remained optimistic about CV adoption in security camera, with two customers currently ramping AMBA's solutions and three other customers expected to be in mass production by the end of 2019".

For an analyst ratings summary and ratings history on Ambarella click here. For more ratings news on Ambarella click here.

Shares of Ambarella closed at $47.37 yesterday.

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