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UPDATE: Morgan Stanley Initiates Ambarella at Overweight; Video Processing Pure Play

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Oppenheimer: For Ambarella, The Bear Thesis No Longer Applies

Morgan Stanley initiated coverage on Ambarella (NASDAQ: AMBA) with an Overweigh rating and a $12 price target.

Morgan Stanley noted, "AMBA is a semiconductor play on increasing video content generation from portable devices. AMBA's superior technology should allow it to sustain 20% rev CAGR and 25% EPS CAGR over next 3-5 years. At 10x C2013e EPS, or less than 5x ex cash, we see >50% upside in 12 months. … Growth is driven by a range of end markets – Sports cameras, 31% of revenues growing an estimated 35% in C2013 (the most controversial point with investors); security cameras, 13% of revenues growing an estimated 50% in C2013; and automotive cameras, 19% of revenues growing an estimated 25% in C2013."

Ambarella closed at $7.70 on Friday.

Latest Ratings for AMBA

DateFirmActionFromTo
Jan 2018OppenheimerUpgradesPerformOutperform
Dec 2017Morgan StanleyMaintainsOverweight
Oct 2017Canaccord GenuityMaintainsBuy

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Posted-In: Morgan StanleyAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

 

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