Ambarella price target lowered to $81 from $89 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Ambarella to $81 from $89 and keeps an Overweight rating on the shares. While stating that overall unit declines of 50% year-over-year in the second half “clearly signal share loss in legacy markets” and admitting that the firm “badly misjudged the impact of the ongoing inventory correction,” the firm continues to see Ambarella technology as having high strategic value, which is becoming its focus “given EPS losses likely through next year,” the analyst tells investors.