Roth MKM downgrades Ambarella to Neutral following weaker guidance

As previously reported, Roth MKM downgraded Ambarella to Neutral from Buy with a $95 price target. The firm notes the company reported steady quarter results but guided below consensus reflecting customer inventory adjustments and backlog order pushouts, particularly in the company’s IoT/consumer segment. Roth MKM believes end demand, particularly in automotive, remains healthy and expects a relatively short-lived inventory adjustment for Ambarella in its target markets.