Joseph Moore, an analyst from Morgan Stanley, maintained the Buy rating on Ambarella. The associated price target remains the same with $96.00.
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Joseph Moore’s rating is based on Ambarella’s strong performance in the IoT sector, which is currently driving the company’s growth. The portable video and other segments, including action cameras, wearables, and panoramic systems, are showing robust momentum, contributing significantly to the company’s revenue. Additionally, Ambarella’s re-entry into the drone market with high-end consumer aerial drones is expected to further boost growth in the coming quarters.
Despite some margin pressure due to a mix of high-volume customers, Ambarella remains focused on increasing gross profit dollars. The company is committed to maintaining its target margin range while prioritizing volume opportunities. Furthermore, while the automotive sector showed modest growth, the long-term prospects in automotive safety and autonomous driving systems remain promising, supporting the Buy rating.
According to TipRanks, Moore is a 5-star analyst with an average return of 17.0% and a 59.34% success rate. Moore covers the Technology sector, focusing on stocks such as Micron, Nvidia, and SanDisk Corp.
In another report released today, Needham also maintained a Buy rating on the stock with a $100.00 price target.