Morgan Stanley: Ambarella Now Worth $100/Share - Ambarella (NASDAQ:AMBA)

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In a report published Wednesday, Morgan Stanley analyst Joseph Moore maintained an Equal-Weight rating on

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Ambarella Inc

(NASDAQ: AMBA), while raising the price target from $65 to $100, after the company reported better-than-expected results.Ambarella reported robust quarterly results with Non GAAP EPS, revenues and gross margins ahead of expectations. The company has guided to 2Q revenues of $81 million, ahead of the Morgan Stanley estimate of $69.1mn and consensus $68.2mn, with the increase being driven by strong sales across the board.The company's growth prospects continue to be driven by its good execution, tight opex control and the launch of new products in new categories. Ambarella continues to perform well in the Chinese security cameras and auto and sports camera segments."A richer mix of high end products across markets is helping gross margins, and the company continues to show tight opex control," analyst Joseph Moore mentioned.Morgan Stanley expects some deceleration in the surveillance camera segment next year. "We see risk reward as fairly balanced from here, as the growth continues to be driven by highly volatile categories with limited visibility; and the dramatic expansion in multiple product categories is likely to bring more competition, over time," Moore added.The NON GAAP EPS estimates for 2Q, CY15 and CY16 have been raised from $0.53 to $0.80, from $2.11 to $3.04 and from $2.68 to $3.54, respectively.