Why Ambarella Stock Soared Today
Shares of Ambarella (NASDAQ: AMBA) have soared today, up by 11% as of 3:20 p.m. EST, after a bull on Wall Street increased his price target. Berenberg reiterated its buy rating on the stock and analyst Andy Buscaglia raised his valuation estimate from $87 to $160, which is now the highest on the Street and represents 70% upside from Friday's closing price.
Buscaglia is bullish on Ambarella's ongoing evolution into a pure-play computer vision (CV) specialist, arguing that the company is making progress faster than expected. For that reason, Berenberg is adopting a modified valuation framework for Ambarella, giving it higher valuation multiples to be more comparable to other peer companies that specialize in the technology.
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Source Fool.com
