The Analyst Landscape: 7 Takes On Ambarella

Throughout the last three months, 7 analysts have evaluated Ambarella AMBA, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 1 2 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 3 1 2 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $75.29, a high estimate of $90.00, and a low estimate of $55.00. A 0.93% drop is evident in the current average compared to the previous average price target of $76.00.

price target chart

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive Ambarella is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Kevin Cassidy Rosenblatt Maintains Buy $85.00 $85.00
Kevin Cassidy Rosenblatt Maintains Buy $85.00 $85.00
Gary Mobley Wells Fargo Lowers Equal-Weight $55.00 $65.00
Suji Desilva Roth MKM Lowers Neutral $60.00 $65.00
Joseph Moore Morgan Stanley Raises Overweight $67.00 $57.00
Quinn Bolton Needham Maintains Buy $90.00 $90.00
Kevin Cassidy Rosenblatt Maintains Buy $85.00 $85.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Ambarella. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Ambarella's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Ambarella analyst ratings.

About Ambarella

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.

Unraveling the Financial Story of Ambarella

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

Decline in Revenue: Over the 3 months period, Ambarella faced challenges, resulting in a decline of approximately -12.34% in revenue growth as of 30 April, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ambarella's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -69.63%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Ambarella's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -6.8%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -5.85%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.01, Ambarella adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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

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