Dougherty Upgrades Ambarella Despite GoPro Pain

• Ambarella Inc (NASDAQ: AMBA) shares have declined 64.88 percent over the past six months, down to a low of $36.43 on January 27.
• Dougherty's Charles Anderson has upgraded the rating on the company to Buy, with a price target of $43.
• Anderson explained that the upgrade was based on expectations that the stock had reached a bottom.

Related Link: This Analyst Sees GoPro At $15 Despite 'Humiliating' Quarter

Analyst Charles Anderson mentioned that although the inventory correction by GoPro Inc (NASDAQ: GPRO) was known since Ambarella reported its earnings in December, “the extent of the correction was jarring.”

The April quarter estimates have therefore been lowered, with GoPro being totally removed from the estimates.

Anderson stated that although there still were “speed bumps” ahead for the company, including the April quarter guidance and weakness in the China security market, “Ambarella's product leadership is intact and there are multiple growth opportunities in front of it.”