Analysts Aren’t Sure What To Do With Ambarella After Earnings

Shares of Ambarella were up more than 4.9 percent early Friday after the company’s Q3 earnings release, which included in-line revenue and a solid EPS beat. However, the company’s guidance wasn’t particularly strong, and Wall Street has mixed feelings about the stock looking forward.

Here’s what three firms had to say about Ambarella following earnings.

Deutsche Bank

Analyst Ross Seymore calls the company’s Q4 guidance “even weaker than expected” and explained that Deutsche Bank remains on the sidelines for now until the company can show signs of stabilization. He notes that the stock’s huge pullback in the second half of 2015 no longer makes its valuation prohibitive.

Deutsche Bank lowered its price target for Ambarella from $70 to $60 based on 17x projected 2016 earnings. The firm maintained a Hold rating on the stock.

Pacific Crest

Analyst Brad Erickson agrees…

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