Ambarella (AMBA): Earnings Preview - Needham

Needham & Company analyst, Quinn Bolton, reiterated his Hold rating on shares of Ambarella (NASDAQ: AMBA), ahead of its 9/1 earnings report.

GoPro significantly reduced excess inventory levels of older GoPro cameras in the retail channel and on its balance sheet over the past two quarters, leading the analyst to expect AMBA to report F2Q17 results near the high end of guidance. The analyst is raising F3Q17 and F4Q17 estimates to reflect expectations for a strong HERO 5 build.

Due to potential shortages of Sony CMOS image sensors, the analyst is not making significant changes to estimates for other camera segments, with the exception of a slight increase in flying camera (drone) revenue estimates.

However, with AMBA shares up 67%, vs. 3.5% for the S&P 500, since June 1 and shares trading at nearly 22x CY17 EPS, the Hold rating remains.

Needham does not have a published price target on the company.

For an analyst ratings summary and ratings history on Ambarella click here. For more ratings news on Ambarella click here.

Shares of Ambarella closed at $68.56 yesterday.

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