BofA Cuts Ambarella Price Target to $72 After In-Line Q4 Results, Lifts FY27/28 Estimates
BofA cut its price target on Ambarella to $72 from $85 following in-line fiscal Q4 results and Q1 guidance and new US limits on Arashi Vision, its largest customer. The firm lifted FY27 and FY28 sales estimates by 3% and 2% and raised pro-forma EPS to $0.71 and $0.93.
1. Price Target Revision Details
BofA reduced its price target on Ambarella to $72 from $85 while maintaining a Neutral rating. The revision reflects concerns over new US restrictions on Arashi Vision due to a patent dispute, which impacts Ambarella's largest customer, despite recent solid operating performance.
2. Financial Results and Guidance
Ambarella reported fiscal Q4 revenue of $100.9 million, up 20.1% from $84.0 million a year earlier, and full-year revenue of $390.7 million, a 37.2% increase. The company’s Q1 guidance was in line with expectations, supporting stable near-term visibility.
3. Analyst Outlook and Estimates
The firm raised FY27 sales forecasts by 3% and FY28 by 2%, boosting pro-forma EPS estimates to $0.71 and $0.93. Analysts cite the edge AI opportunity as a growth driver while noting Ambarella’s sales growth may trail small-to-mid cap semiconductor peers.