Ambarella Inc Stock Forecast:
Fifteen analysts have made stock forecasts for Ambarella Inc, and their average target price for the company over the next year is USD 96.14. The analysts’ average rating for Ambarella Inc is Strong Buy. However, according to Stock Target Advisor‘s analysis, the company’s stock is Bearish, based on one positive signal and nine negative signals. Ambarella Inc’s stock price at the last closing was USD 94.31. In the past week, the stock price has gone up by 4.30%, and in the past month, it has gone up by 5.14%. However, over the past year, the stock price has gone down by 32.50%.
Analysts Coverage Change:
- KeyBanc Capital Markets maintains an “Overweight” rating on Ambarella Inc and raises the price target to $105 from $95.
- Roth MKM Downgrades to “Neutral” with a price target of $95
- Morgan Stanley & Co. maintains an “Overweight” rating and lowers the price target to $97 from $105.
- Rosenblatt Securities reiterates a “Buy” rating with a price target of $100.
Ambarella Inc. News:
Ambarella reported earnings of $0.23 per share for the quarter ended January 2023, exceeding estimates of $0.15 per share and representing a 53.33% earnings surprise. This result compares to earnings of $0.45 per share for the same period a year ago. The company’s quarterly revenue was $83.32 million, surpassing the estimates by 0.34%, but declining from the previous year’s $90.23 million.
Over the last four quarters, Ambarella has surpassed consensus EPS estimates three times and consensus revenue estimates four times. The sustainability of the stock’s immediate price movement will depend on management’s commentary during the earnings call, as well as future earnings expectations.
Ambarella’s stock has gained 12.4% since the beginning of the year, outperforming the S&P 500’s 3.7% gain.
Positive Fundamentals:
The positive cash flow of Ambarella Inc in the most recent four quarters is a positive sign for the company’s financial health.
Positive cash flow means that the company generated more cash inflows than outflows in a given period. This indicates that Ambarella Inc has enough cash on hand to cover its expenses, invest in its business, and pay dividends to shareholders. Positive cash flow also suggests that the company is managing its operations efficiently and effectively.
Negative Fundamentals:
Ambarella Inc stock has poor risk-adjusted returns compared to its peers, with unpredictable returns. It also has high volatility, low dividend returns, and is overpriced compared to earnings, book value, and cash flow. Additionally, the company had negative free cash flow in the most recent four quarters and has shown below median earnings and revenue growth in the previous 5 years compared to its sector. Investors should proceed with caution when considering buying this stock.
FA Score (Fundamental Analysis):
The fundamental analysis of Ambarella Inc is “Bearish” with a FA score of 1 out of 10, where 0 is very bearish and 10 is very bullish.
