Ambarella's (AMBA) Price Target Lowered to $85 at Deutsche Bank as Guidance Disappoints
Deutsche Bank maintained a Hold rating on Ambarella (NASDAQ: AMBA) and lowred its price target to $85.00 (from $100.00). Analyst Ross Seymore called Q2 a solid quarter but he noted that guidance was disappointing, especially given its beat and raise trend.
"Ambarella reported a solid quarter but guided revs/PF EPS below DBe (although in-line with consensus), which is likely to be viewed as an incremental disappointment after multiple years of beat/raises. We view inventory adjustment and launch pull-ins within the Sports/Wearables endmarket as the reason for cautious guidance, offsetting strength in Auto, Drones and Consumer IP Security ramps. We view the co as having multiple secular growth drivers but given somewhat disappointing guidance and potential competition, we remain on the sidelines and maintain our Hold rating," said Seymore.
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Shares of Ambarella closed at $89.61 yesterday.