Dougherty & Co downgraded Ambarella (NASDAQ: AMBA) from Buy to Neutral.

Analyst Charles Anderson commented, "We're no fan of flipping ratings one month after making a change, but we feel it is prudent to go back to a Neutral rating on Ambarella at this time. If the stock opens at $43, it will trade 18x our new FY17 EPS estimate of $2.46, or 14x excluding $9/sh in cash. The bottom line is that we are unable to make a strong argument that this is a good entry point. It seems more like fair value. This is especially true given our decision to lower FY17 estimates. The cuts are based on cautious management commentary around 1) near-term GoPro reordering levels and 2) visibility in China for IP Security demand. We said when we upgraded that we hoped we had seen the last cut. It turns out we hadn't."

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 $46.24 yesterday.