Baird views Ambarella as takeover candidate, cuts price target

Baird lowered the firm’s price target on Ambarella (AMBA) to $70 from $120 and keeps an Outperform rating on the shares. Beyond the “current and deepening” inventory correction, a takeover is the best outcome for Ambarella to leverage its full architecture potential, the analyst tells investors in a research note. It is “increasingly difficult to go at it alone” given the cautious stance by car makers and lack of software libraries being an obstacle for data centers, contends the firm. Baird views AMD (AMD) as a good fit for a potential acquisition partner. Ambarella could meet its full architecture potential as part of a larger company providing customer breadth and software platforms, the firm contends.