NEW YORK (TheStreet) -- Shares of Ambarella (AMBA) are up to $54.04 in pre-market trading after Pacific Crest reiterated its "buy" rating and $70 price target, saying the GoPro (GPRO) supplier benefits from holiday demand.
Ambarella, a video technology company that supplies GoPro with image-processing chips, remains a key beneficiary of "very strong" GoPro holiday demand, analysts said.
Additionally, on the eve of what is likely to be "a very eventful CES" for Ambarella, analysts believe interest and optimism around emerging HD video applications is likely to build in the coming weeks and months.
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Separately, 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 multiple strengths, 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 good cash flow from operations. 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."