UPDATE: Stifel Maintains Buy on Ambarella, Raises PT from $27.00 to $34.00

In a report published Monday, Stifel analyst Kevin Cassidy maintained a Buy rating on Ambarella, Inc. AMBA, raising its price target from $27.00 to $34.00. According to the report, AMBA shares have been very volatile since the company's Dec. 20, 2013 announcement that it is exploring with Google a new class of wearable camera for the "Helpouts" application and service, using a new AMBA reference platform. The shares now mostly pulled back only ~15% above the pre-Google announcement due to valuation downgrades. “Following our meeting with management last week, we see the company as expanding its video technology lead while expanding/creating new addressable markets,” the report noted. “We think investors should remain involved with AMBA shares to benefit from the longer term trends in video applications. We continue recommending Ambarella for their increasing market share in IP Security Cameras and Sports Cameras but for the potential revenue upside from the emerging wearable camera market and their ability to add analytics to the video files.” Some risks to AMBA include established competitors may leverage larger intellectual property portfolios and customer base is concentrated as AMBA may be subject to rapid market share loss. AMBA closed Friday at $29.31 with shares trading down at 8.89 percent.
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Posted In: Analyst ColorReiterationAnalyst RatingsKevin CassidyStifel
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