Analysts Lower Ambarella Price Targets: Shifting Focus From Earnings To Underlying Tech Amid Market Weakness
Portfolio Pulse from Shivani Kumaresan
Ambarella Inc reported a 23% YoY decline in Q2 FY23 revenue to $62.12 million, beating the consensus of $62.05 million. The company's Q3 revenue forecast is $50 million, lower than estimates of $67.6 million. Analysts from Morgan Stanley, Rosenblatt, and Needham have lowered their price targets for the company due to the surprising severity of revenue weakness and uncertainty around longer-term opportunities. AMBA shares are trading lower by 18.14%.
August 30, 2023 | 5:38 pm
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Ambarella's Q2 FY23 revenue beat consensus despite a 23% YoY decline. However, the company's Q3 revenue forecast is lower than estimates, leading to lowered price targets by analysts and a drop in share price.
Ambarella's Q2 FY23 revenue beat the consensus, but the company's Q3 revenue forecast is lower than estimates. This has led to analysts from Morgan Stanley, Rosenblatt, and Needham lowering their price targets for the company. The lowered price targets and the lower than expected Q3 revenue forecast have negatively impacted the company's share price, which is down by 18.14%.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100