UPDATE: Jefferies Starts Ambarella (AMBA) at Buy
- Wall Street mints big gains to end strong week
- JP Morgan's Kolanovic Predicts No Recession and Next Week's Rebalancing Could Drive Stocks Up 7%
- U.S. Supreme Court overturns Roe v. Wade, ends constitutional right to abortion
- FedEx (FDX) Gains on Solid FY23 Outlook, Analysts Mostly Bulled Up Into Next Week's Investors Day
- Get Ready for a 10% Rally in S&P 500
Jefferies analyst David Kelley initiates coverage on Ambarella (NASDAQ: AMBA) with a Buy rating and a price target of $170.00.
The analyst comments "$5bn market cap AMBA is a SoC supplier in transition, from video processing for security & consumer cameras and autos to integrated computer vision (or "CV") applications for growing enterprise & home security and auto ADAS applications. With high visibility to ASP expansion (CV is on avg. 2x legacy) and a growing TAM driven by AI video analytics and advanced ADAS & driver monitoring demands (auto), we forecast AMBA delivers a +21% revenue CAGR through FY'24 led by autos. We see opportunity for OpEx leverage; EBIT margin expansion from 19% in '22 to 21% in '23 with LT upside. Despite recent pullback, we note strong OCF generation & capital allocation track record."
Shares of Ambarella closed at $133.31 yesterday.
You May Also Be Interested In
- Raymond James Assigns Outperform Rating to Cano Health (CANO), Sending Stock Up 10%
- Macquarie Group Ltd. (MQG:AU) (MQBKY) PT Lowered to AUD1.94 at Jefferies
- Royal Mail PLC (RMG:LN) (ROYMF) PT Lowered to GBP4.46 at Goldman Sachs
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!