Analyst: Ambarella Inc Growth To Stem From New Business With Xiaomi

Loading...
Loading...
Ambarella Inc.'s
AMBA
growth of up to 30 percent this year will flow from its top customer GoPro Inc.
GPRO
along with newly signed business with Xiaomi, an analyst said Wednesday. The Santa Clara based video chipmaker closed Wednesday up 7 percent at $67.49 after beating fourth-quarter expectations and raising its outlook a day earlier. Additional growth drivers for Ambarella in the current year will include video markets related to security and the automotive industry as well as video broadcast infrastructure, according to Canaccord's Matthew Ramsay. The analyst maintained a Buy rating on Ambarella and boosted his price target 12 percent to $74. Ambarella's Chief Financial Officer George Laplante said late Tuesday that the company was raising its performance forecast for the current year primarily because of strength in its security and automotive markets. But Ramsay said LaPlante "essentially excluded" the security and automotive markets from the company's forecast of growth in the current year of between 27 percent and 30 percent. "These are emerging markets that will provide significant upside," Ramsay said. Ambarella Chief Executive Fermi Wang on a call with analysts Tuesday didn't provide an estimate for revenue that may stem from the new Xiaomi business. "Our pricing strategy for Xiaomi is the same that we apply to all the other customers,' Wang told investors. "Higher volume get a better price.
Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst Ratings
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...