The higher price target comes ahead of the Santa Clara, CA-based company's 2017 fiscal second quarter results, due out after Thursday's closing bell.
Wall Street is expecting the developer of video compression and image processing solutions to post earnings of 38 cents per share on revenue of $64.02 million.
"While the well-publicized recent struggles from key customer GoPro (GPRO) will continue to impact JulyQ results ahead of the HERO5 launch later this year, we believe strength in drones, home security and other markets should drive results above the guidance midpoint when reported this Thursday," Canaccord wrote in an analyst note.
The firm anticipates that broadening strength in camera demand and a recovery of sales into GoPro to support the HERO5 launch will drive the results solidly above consensus estimates.
But Canaccord said expected quarterly seasonality remains unclear due to the image sensor supply disruption at Sony (SNE) due to the earthquake earlier this year.
Additionally, Pacific Crest Securities increased its price target on shares to $75 from $53 earlier today. The firm has an "outperform" rating on Ambarella.
"Positive drone commentary and an additional GoPro SKU for the holiday are promising for AMBA," the firm wrote in a note.
Shares of Ambarella were advancing in late-afternoon trading on heavy volume Tuesday. About 1.06 million of the company's shares changed hands so far today vs. its average volume of 879,084 shares per day.
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 notable return on equity.
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