Ambarella price target raised to $90 from $85 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Ambarella (AMBA) to $90 from $85 and keeps a Buy rating on the shares. The firm notes the company Q4 guidance well above consensus is reflective of two dynamics — inventory burn completing and higher ASP Edge AI solutions ramping well — that are driving the stock higher today. Craig-Hallum thinks the positive reaction is a bit overdone in the near-term, but would be ready to own this high-quality name for a combination of its premier AI edge/IoT market position and call option into the massive automotive L2+ opportunity that should unfold the rest of the decade.