Morgan Stanley analyst Joseph Moore has maintained their bullish stance on AMBA stock, giving a Buy rating yesterday.
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Joseph Moore’s rating is based on Ambarella’s strategic potential and technological capabilities. Despite the challenges in commercializing their AI inference technology, particularly in the risk-averse automotive supply chain, Moore sees the company’s best-in-class solutions as a significant asset. The company’s recent efforts to secure a major domain controller opportunity, believed to be with Volkswagen, although unsuccessful, highlight the potential for substantial stock appreciation with such wins.
Moore remains optimistic about Ambarella’s prospects, citing their success with key automotive companies like Continental and Bosch as evidence of their technological prowess. He acknowledges the frustration of not securing OEM wins for critical sockets but attributes this to a broader lack of innovation in the automotive sector outside of China and Tesla. Moore also notes the company’s focus on non-automotive markets as a positive step, with significant long-term growth potential. The valuation of $80 per share reflects the optionality and potential for large automotive wins not currently in forecasts.
In another report released yesterday, Rosenblatt Securities also reiterated a Buy rating on the stock with a $95.00 price target.