Ambarella price target lowered to $65 from $85 at Roth Capital

Roth Capital analyst Suji Desilva lowered the firm’s price target on Ambarella (AMBA) to $65 from $85 and keeps a Neutral rating on the shares. The company reported in-line results with broad contribution across both non-auto Edge AI and automotive applications, and the firm is encouraged by the broad growth across both edge AI and Auto, with newer company design wins driving both average selling price uplift and diversification, the analyst tells investors in a research note. In the coming quarters, Roth expects Ambarella to focus on establishing key channel partnerships to better target higher ASP AI chips opportunities across autonomy markets such as drones along with continued effort in auto and newer robotics, the firm added.