Ambarella sinks as revenue forecast falls short of estimates

Ambarella

30/08/2023 09:49

** Shares of chip maker Ambarella  AMBA.O  fall nearly 20%
to $61.10 premarket after co targets Q3 revenue forecast below
estimates
    ** Co expects Q3 revenue of $50 mln, +/-4%, well below Wall
Street estimates of $67.6 mln
    ** TD Cowen downgrades to "market perform" from
"outperform", trims PT to $65 from $90    
    ** Customer inventory burn accelerates, leaving company with
little visibility in the near (and intermediate) term - TD Cowen
    ** Roth MKM believes AMBA's near-term outlook remains
challenging as customers aggressively work down inventory,
particularly in China 
    ** Roth MKM cuts PT to $60 from $75
    ** Average rating of 19 brokerages covering stock is "buy";
median PT $87.50
    ** Stock slumped ~12% on May 30 after weak Q2 outlook
    ** AMBA down 7.8% YTD versus 43.3% gain in the Philadelphia
chip index  .SOX 

 (Reporting by Medha Singh)
 ((medha.singh@thomsonreuters.com))