The analyst firm also raised its 2015 EPS estimates for the video compression and image processing chipmaker to $1.78 a share from $1.59 a share. The firm raised its 2016 EPS estimates to $1.96 a share from its previous estimates of $1.82 a share.
"Ambarella's strong report and guidance matched our HD video secular growth thesis," analyst Brad Erickson wrote. "Whether it is IP security, GoPro (GPRO) , wearables or drones, we would be buying AMBA as the best way to play these secular tailwinds, particularly as excitement is likely to build heading into CES."
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TheStreet Ratings team rates AMBARELLA INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMBARELLA INC (AMBA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
You can view the full analysis from the report here: AMBA Ratings Report