Quinn Bolton, an analyst from Needham, maintained the Buy rating on Ambarella (AMBA – Research Report). The associated price target was raised to $110.00.
Quinn Bolton has given his Buy rating due to a combination of factors including Ambarella’s strong financial performance and promising growth prospects. The company reported results that exceeded expectations and provided guidance indicating further growth, particularly driven by the CV5 and CV7 product families.
Additionally, despite some uncertainty due to potential government policy impacts, Ambarella’s gross margin is expected to remain near the high end of its target range. The increasing demand for AI compute power at the edge also suggests potential for higher average selling prices, supporting a positive outlook. Consequently, the price target has been increased to $110, reflecting these optimistic projections.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $90.00 price target.