TD Cowen maintained a Hold rating on Ambarella (NASDAQ:AMBA) shares, while increasing the price target to $75 from the previous $65. This adjustment follows the company's release of solid financial results and a very strong guidance.
Ambarella's recent performance has suggested that the company may have moved past the most challenging period. The firm's focus is now on capitalizing on design wins and escalating its new product revenue.
The growth is described as being evenly distributed across the Automotive and Internet of Things (IoT) sectors, with new products contributing to sequential strength.
TD Cowen's updated price target reflects a recognition of Ambarella's positive outcomes and outlook. The firm acknowledges the strong set of results and guidance provided by Ambarella, indicating a potential turning point for the company.
Despite the optimistic results and guidance, TD Cowen has chosen to maintain a Hold rating on Ambarella's stock. The firm notes that while the recent developments are undeniably positive, there is still much for the company to prove moving forward.
Ambarella has received a vote of confidence in the form of an increased price target, signaling that the company's strategic efforts in product development and market expansion are gaining traction. The new price target is set at $75, up from $65, as Ambarella continues to execute its growth initiatives.
In other recent news, Ambarella Inc . reported significant growth in its second fiscal quarter of 2025, with a 17% sequential rise in revenue to $63.7 million. The revenue growth was largely driven by strong performance in edge AI inference. The company's non-GAAP earnings per share were at a loss of $0.13, but this surpassed consensus estimates of a loss of $0.19 per share.
The Oppenheimer analyst maintained a neutral stance on the stock, despite the positive performance and outlook, citing potential near-term economic challenges within the automotive market. Ambarella is ramping up production of the CV5 family and expects the CV7 family to enter production by the end of fiscal year 2025. The company's cash and marketable securities stood at $219.8 million by the end of Q2. These are recent developments that could have an impact on the company's future performance.
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