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The Analyst Verdict: Ambarella In The Eyes Of 4 Experts

4 analysts have expressed a variety of opinions on Ambarella (NASDAQ:AMBA) over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 3 0 0 0
Last 30D 1 2 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 1 0 0 0
3M Ago 0 0 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $87.5, a high estimate of $100.00, and a low estimate of $70.00. Surpassing the previous average price target of $78.75, the current average has increased by 11.11%.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Ambarella's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Christopher Rolland Susquehanna Raises Positive $85.00 $70.00
Gus Richard Northland Capital Markets Raises Outperform $95.00 $75.00
Quinn Bolton Needham Raises Buy $100.00 $90.00
Christopher Rolland Susquehanna Lowers Positive $70.00 $80.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Ambarella. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ambarella compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Ambarella's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Ambarella's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Ambarella analyst ratings.

Discovering Ambarella: A Closer Look

Ambarella Inc is a developer of semiconductor processing solutions for high-definition video capture, sharing, and display. The firm's solutions are sold to original design manufacturers and original equipment manufacturers to be designed for use in infrastructure broadcast encoders, wearable device cameras, automotive cameras, and security cameras. Ambarella's system-on-a-chip designs, based on its proprietary technology platform, are highly configurable to applications in various end markets. Geographical presence in Taiwan, Asia Pacific, Europe, North America, and the United States. The firm derives the majority of its revenue from Taiwan.

Understanding the Numbers: Ambarella's Finances

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Ambarella's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.58% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Ambarella's net margin is impressive, surpassing industry averages. With a net margin of -54.75%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Ambarella's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.33%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Ambarella's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -5.41%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Ambarella's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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