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UPDATE: Ambarella (AMBA) PT Lowered to $150 at Berenberg, 'China lockdowns dampen H2 optimism'

June 6, 2022 7:17 AM EDT
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Price: $58.38 +3.92%

Rating Summary:
    17 Buy, 6 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 6 | Down: 13 | New: 11
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(Updated - June 6, 2022 7:18 AM EDT)

Berenberg analyst Andy Buscaglia lowered the price target on Ambarella (NASDAQ: AMBA) to $150.00 (from $185.00) while maintaining a Buy rating.

The analyst comments "China lockdowns weigh on near-term revenue growth; CV story still intact; Reiterate Buy: While Ambarella (AMBA) beat FQ1 EPS consensus estimates last week, FQ2 revenue guidance was ~13% below expectations due to China lockdowns as customers deferred orders given difficulty securing components on their end. With pandemic-related uncertainty in China and related supply-chain issues lingering, AMBA expects just a gradual qoq improvement in H2. We now assume 5% sales growth in CY2022 (versus 17% previously). We reduce our PT to $150 (from $185) and maintain our Buy rating on AMBA as we think Street estimates are now "de-risked" and its valuation offers favorable risk/reward on reasonable estimates. We remain positive on the long-term potential for computer vision (CV) growth, as AMBA maintained its outlook for CV to reach 45% of sales this year."


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