Needham & Company Downgrades Ambarella (AMBA) to Underperform

Needham & Company downgraded Ambarella (NASDAQ: AMBA) from Hold to Underperform.

Analyst N. Quinn Bolton commented, "With AMBA shares up 65% YTD in 2014, vs. 30.3% for the SOX Index and 15.1% for the NASDAQ Composite, we note the company now trades at one of the richest valuations in our coverage universe. Factors that we believe may cause AMBA to underperform its peers in 2015 include 1) a rapid deceleration in Y/Y revenue growth during the year, 2) management expects gross margin to compress in C2H15, and 3) pricing pressure from its largest customer, GoPro (NASDAQ: GPRO)."

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 $55.94 yesterday.

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