Why Ambarella Inc. Stock Growth Is No Sure Thing
Investors have good reasons to be optimistic about Ambarella's (NASDAQ: AMBA) business. After all, the camera tech specialist owns valuable semiconductor design properties that could earn it an early leadership position in attractive markets including automotive, computer vision, drones, and wearable devices.
That vast addressable market supports the company's premium valuation. Even after a double-digit decline so far in 2017, Ambarella is priced at 30 times earnings, compared to a P/E of 24 for the broader market.
It's far from a sure thing that the company will grow into that valuation, though. Here are few reasons why the stock could continue underperforming from here.
Source: Fool.com
Ambarella Inc. Stock
€48.75
-0.250%
The stock is one of the favorites of our community with 21 Buy predictions and 4 Sell predictions.
As a result the target price of 75 € shows a very positive potential of 53.85% compared to the current price of 48.75 € for Ambarella Inc..
