Needham & Company Upgrades Ambarella (AMBA) to Hold

Needham & Company upgraded Ambarella (NASDAQ: AMBA) from Underperform to Hold.

Analyst N. Quinn Bolton commented, "AMBA reported stronger than expected F1Q16 results and provided F2Q16 guidance well ahead of consensus estimates. The better guide reflects several new product releases across multiple customers and segments. Importantly, flying cameras/drones are expected to take a step function higher in F2Q16 and represent more than 10% of sales for the first time. With AMBA's core business proving stronger than expected and new drone and consumer IP security camera applications now representing meaningful new revenue streams for the company, we upgrade shares to Hold from Underperform. While AMBA shares may not be inexpensive, we believe the 25-30x P/E multiple is justified by the much stronger than expected growth and mild competitive environment."

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 $92.21 yesterday.

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