Erickson noted that his checks in the United States revealed relatively in-line
Pacific Crest believes Black Friday discounts for
The firm lowered its estimates for the company, with the 2017 and earnings per share estimate now at $2.52 and $3.29, respectively compared to $2.73 and $3.35 previously. The firm also reduced its 2017 and 2018 revenue estimates to $303.6 million and $371.3 million, respectively from $316.7 million and $374.4 million. Consequently, the price target moves down to $70 from $75.
Rating, Further Justification
That said, Pacific Crest remains Overweight longer-term on the shares of Ambarella, given its solid secular growth exposure outside of action cameras and under-appreciated longer-term margin potential. The firm thinks the company's differentiated HD video technology is an asset that larger peers could find valuable down the road.
The company's secular growth exposure and cost profile, according to the firm, could help it return to sustainable 20 percent-plus growth. The firm, however, prefers to wait until after the print to add to positions.
At Time Of Writing
- Ambarella was down 1.29 percent at $62.80.
- GoPro was up 1.33 percent at $9.94.
Image Credit: By dronepicr (Gopro Karma drone hero 5) [CC BY 2.0], via
|Sep 2016||Roth Capital||Initiates Coverage on||Buy|
|Jun 2016||Deutsche Bank||Maintains||Hold|
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