Analysts Bump Up Ambarella Price Targets Post Q3 Beat

Analysts hailed Ambarella Inc's AMBA Q3 beat and Q4 outlook by raising their price targets.

• KeyBanc analyst John Vinh maintained an Overweight and raised the price target from $185 to $230, implying a 28.1% upside.
• Despite encountering kitting shortages, Ambarella delivered results and guidance above expectations. 
• More notably, Ambarella announced that it is shipping in production into EV truck maker Rivian Automotive Inc RIVN in the model R1T with multiple CV SoCs to support video perception, surround-view processing, and security, Vinh says, highlighting that the company has also tripled its 6-year discounted auto revenue funnel to $1.8 billion.
• Wells Fargo analyst Gary Mobley raised the price target to $185 from $115, implying a 3.1% upside, and reiterated an Equal Weight.
• Rosenblatt analyst Kevin Garrigan maintained a Buy and raised the price target from $210 to $250, implying a 39.3% upside.
• Deutsche Bank analyst Ross Seymore raised the price target to $155 from $115, implying a 13.7% downside, and reiterated a Hold. 
• The company once again delivered a revenue beat, albeit with its guidance raise smaller in magnitude than past quarters, as supply issues weigh on its ability to address demand.
• However, more critical than these near-term dynamics, Ambarella's longer-term outlook "remains robust."
• Baird analyst Tristan Gerra raised the price target to $200 from $125, implying an 11.4% upside, and maintained a Neutral.
• The analyst said they have a very significantly de-risked China demand exposure. In contrast, its automotive revenue funnel has tripled to $1.8 billion from a year ago, with perception remaining a key driver but now adding fusion use cases.
• Needham analyst N. Quinn Bolton raised the price target to $225 from $220, implying 25.3% upside, and affirmed a Buy.
• Roth Capital analyst Suji Desilva raised the price target to $260 from $225, implying a 44.8% upside, and maintained a Buy.
• Morgan Stanley analyst Joseph Moore raised the price target to $229 from $222, implying a 27.6% upside, and kept an Overweight rating.
• Price Action: AMBA shares traded higher by 15.4% at $207.12 in the premarket session on the last check Wednesday.