Demystifying Ambarella: Insights From 9 Analyst Reviews

9 analysts have expressed a variety of opinions on Ambarella AMBA over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $78.33, along with a high estimate of $90.00 and a low estimate of $65.00. This upward trend is apparent, with the current average reflecting a 12.87% increase from the previous average price target of $69.40.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Ambarella among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ambarella compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Ambarella's stock. This comparison reveals trends in analysts' expectations over time.

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.

Delving into Ambarella's Background

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 United States. The firm derives majority of revenue from Taiwan.

A Deep Dive into Ambarella's Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Ambarella's revenue growth over a period of 3 months has faced challenges. As of 31 October, 2023, the company experienced a revenue decline of approximately -39.11%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -82.44%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Ambarella's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.99%, 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 -6.04%, 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 at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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