Market Overview

Stifel Hikes Ambarella To $115/Share On Potential For 'Analytics Features'

Share:
Stifel Hikes Ambarella To $115/Share On Potential For 'Analytics Features'
Related
The Top 11 Analysts On TipRanks And What They Cover
Sympathy Moves, Explained: Unsympathetic Earnings Season Continues As Nvidia, Advanced Micro Devices Diverge

In a report published Thursday, Stifel analyst Kevin E. Cassidy maintained a Buy rating on Ambarella Inc (NASDAQ: AMBA), while raising the price target from $105 to $115, after meeting with the company's CFO, George Laplante.

"Following the meetings we are more convinced that Ambarella is methodically expanding on its core competencies (video capture, compression and energy efficiency) which is increasing competitive barriers to entry," analyst Kevin Cassidy said.

Management expects its next generation device to be available in 2016 with the addition of analytics, which promises to "increase the intelligence of a video camera."

In the report Stifel noted, "Analytics is currently software that helps the camera make decisions (e.g. did a dog or a person walk into a room, or is the drone about to hit an obstacle). In the future, management expects to have analytics features in hardware. Once in hardware, decisions can be made much faster than in software. We see analytics as a critical barrier to entry for competitors and providing additional camera features."

Ambarella has plans to invest around $10 million in developing its next gen video processors, which would be based on 14nm, the leading edge of semiconductor process technology. The prototype may be available in October, with full production expected a year later.

The revenue and non-GAAP EPS estimates for FY17 have been raised from $384.0 million to $404.0 million and from $3.19 to $3.50, respectively, to reflect "a trend for broadband service providers offering home monitoring as part of their internet, broadcast TV and telephone bundle," Cassidy wrote.

Latest Ratings for AMBA

DateFirmActionFromTo
Mar 2017DoughertyUpgradesNeutralBuy
Nov 2016KeyBancMaintainsOverweight
Sep 2016Roth CapitalInitiates Coverage onBuy

View More Analyst Ratings for AMBA
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Price Target Reiteration Top Stories Analyst Ratings Tech Trading Ideas Best of Benzinga

 

Related Articles (AMBA)

View Comments and Join the Discussion!