Ambarella more than just a GoPro chip supplier

By | February 11, 2015

Scalper1 News

Ambarella (AMBA) is often mentioned in the same breath as GoPro because it makes image processing chips for GoPro’s popular Hero action cameras. But Ambarella is much more than just a GoPro chip supplier. Ambarella gets an estimated 35% to 40% of its revenue from GoPro (GPRO), the leading maker of wearable sports cameras, FBN Securities analyst Shebly Seyrafi said in a research report Tuesday. But it gets a similar share of sales from makers of of Internet protocol security cameras, including Ubiquiti Networks (UBNT), he said. IP security cameras are used for surveillance and are gradually replacing analog CCTV (closed-circuit television) devices, Seyrafi said. Ambarella is a good play on strong growth in GoPro sales and in IP security cameras, Seyrafi said. He initiated coverage of Ambarella stock with an outperform rating and price target of 70. Ambarella stock rose 1.2% to 56.25 on Tuesday, while GoPro stock has… Scalper1 News

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