China Lockdowns Weigh on Ambarella’s Near-Term Growth

Analysts at Berenberg Bank provided their views on Ambarella, Inc. (NASDAQ:AMBA), emphasizing the negative impact of China lockdowns on the company’s near-term revenue growth.
While the company reported a Q1 EPS beat last week, Q2 revenue guidance was approximately 13% below the Street estimates due to China lockdowns as customers deferred orders given difficulty securing components on their end.
With pandemic-related uncertainty in China and related supply-chain issues lingering, the company expects just a gradual quarter-over-quarter improvement in H2.
The analysts now assume 5% sales growth in 2022 (versus 17% previously) and reduce their price target to $150 from $185, while maintaining their buy rating as they think Street estimates are now “de-risked” and its valuation offers favorable risk/reward on reasonable estimates.

Follow us on Google news for more updates and News

Full Disclaimer



Get the most important news and analyses for Free.

Thank you for subscribing.

Something went wrong.