UPDATE: Jefferies Starts Ambarella (AMBA) at Buy

January 27, 2022 4:04 AM EST
Get Alerts AMBA Hot Sheet
Price: $72.86 +6.41%

Rating Summary:
    17 Buy, 5 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 20
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(Updated - January 27, 2022 6:59 AM EST)

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."

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 $133.31 yesterday.


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