Ambarella (AMBA) PT Raised to $140 at Needham & Company

Needham & Company analyst Quinn Bolton raised the price target on Ambarella (NASDAQ: AMBA) to $140.00 (from $80.00) while maintaining a Buy rating.

The analyst commented, "Ambarella reported solid F4Q21 results with revenue and GM coming in above guidance while F1Q22 revenue guidance came in far better than expected. While Ambarella still expects to generate >25% of its FY22 sales from CV products, non-CV sales are now expected to grow moderately in FY22 (vs. prior expectations of flat). Ambarella's improved FY22 outlook implies a higher level of FY22 CV sales than previously expected. To better reflect the company's long-term growth prospects, particularly with the long sale cycles in auto, we are rolling out a discounted cash flow (DCF) model to value AMBA shares. We believe the company's continued traction in winning CV designs is supportive of robust long-term growth. As such, we are increasing our estimates and PT to $140, based on our new 10-year DCF model with a 30x terminal P/E multiple."

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