China Lockdowns Weigh on Ambarella’s Near-Term Growth
<p>Analysts at Berenberg Bank provided their views on <a href='https://financialmodelingprep.com/financial-summary/AMBA'>Ambarella, Inc. (NASDAQ:AMBA)</a>, emphasizing the negative impact of China lockdowns on the company’s near-term revenue growth.</p>
<p>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. </p>
<p>With pandemic-related uncertainty in China and related supply-chain issues lingering, the company expects just a gradual quarter-over-quarter improvement in H2. </p>
<p>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. </p>

NASDAQ:AMBA