Ambarella's (AMBA) Price Target Trimmed at Pacific Crest But Overweight Rating Maintained

Pacific Crest maintained an Overweight rating on Ambarella (NASDAQ: AMBA) but lowered its price target to $102.00 (from $123.00). The lower price target is tied to GoPro (NASDAQ: GPRO) estimates, said analyst Brad Erickson.

"After hosting an NDR with AMBA's management last week, we came away incrementally more confident in the company's competitive moat and growth opportunities outside of GoPro. Recent weak GoPro data have us lowering our target to $102 from $123, but, longer term, we are bullish on AMBA once a potentially soft GoPro Q4 is fully digested in the name," said Erickson.

"We are adjusting our estimates to reflect an earlier flagship refresh from GoPro consistent with our new GoPro estimates. However, our F2016 and F2017 estimates remain unchanged as we do not believe sell-through has worsened materially since Ambarella provided its soft wearable camera outlook on its last earnings conference call on Sept. 1. Further, the NDR reinforced our confidence that the company's other businesses should contribute to the company's target model of 20%-25% growth next year," added the analyst.

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 $55.04 yesterday.

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