Ambarella, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Quinn Bolton from Needham maintained a Buy rating on the stock and has a $100.00 price target.
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Quinn Bolton has given his Buy rating due to a combination of factors including Ambarella’s impressive financial performance and strategic growth initiatives. The company has exceeded expectations with its F2Q26 results and provided a strong outlook for F3Q26, which is significantly above market predictions.
Ambarella’s projected revenue growth for FY26 has been revised upwards to 31%-35% year-over-year, driven by both an increase in units and average selling prices. The company’s diversification efforts in the IoT sector, particularly in areas like robotic aerial drones and edge AI infrastructure, are also contributing to its growth. Furthermore, while the IoT segment is expected to be the main growth driver in the near term, a substantial opportunity in the Automotive sector is anticipated in the coming years. As a result, the price target for Ambarella’s stock has been increased to $100 based on a discounted cash flow model.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMBA in relation to earlier this year.