The firm also maintained its "buy" rating on shares of the Santa Clara, CA-based semiconductor company and supplier to GoPro (GPRO).
The higher price target comes after Canaccord met with the company's management.
"Meetings were mixed in tone on near-term trends with investors looking to understand the size and growth potential of the sports camera and drone markets," the firm wrote in an analyst note.
"Longer-term focused meetings were quite positive and we believe investors are gradually starting to understand the underappreciated sensor fusion algorithm and computer vision hardware roadmaps," Canaccord added.
While some investors continue to voice concern around GoPro, the firm believes Ambarella's technology roadmap is driven by the automotive and professional drone markets.
"Overall, despite the recent headwinds to growth at GoPro and from Sony (SNE), our long-term conviction regarding Ambarella's leading technology position in several growing end markets including wearable, security, automotive, and drone cameras remains intact," Canaccord contended.
Shares of Ambarella were largely flat in mid-morning trading today.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AMBA