Ambarella Receives Positive Rating and Revised Price Target

Ambarella (AMBA) has received a positive rating and a revised price target of $90.00 from Susquehanna, a 12.5% increase from the previous target of $80.00. The average target price from 13 analysts is $77.83, with a high estimate of $95.00 and a low estimate of $49.60. The average brokerage recommendation is 2.3, indicating "Outperform" status. The estimated GF Value for Ambarella in one year is $75.86, suggesting a 9.75% upside from the current price.

Susquehanna has adjusted its price target for SolarEdge (SEDG, Financial) from $14 to $26, while maintaining a Neutral rating on the stock. This revision comes as the firm updates its projections for the alternative energy sector ahead of the second-quarter reports. Despite the increase, Susquehanna remains cautious due to the prevailing uncertainty associated with tariffs and potential changes to the Inflation Reduction Act's subsidy provisions [1].

The average target price from 26 analysts is $20.40, with a high estimate of $100.00 and a low estimate of $5.00. The consensus recommendation from 31 brokerage firms is currently "Hold," with an average rating of 3.4 [1]. GuruFocus estimates the GF Value for SolarEdge in one year to be $33.36, suggesting a 25.32% upside from the current price of $26.62 [1].

SolarEdge reported Q1 2025 revenue of $219.5 million, with non-GAAP revenue of $212.1 million. The company achieved positive free cash flow for the second consecutive quarter, expanding gross margins and reducing operating expenses. SolarEdge has been recognized as the top inverter supplier in the US for rooftop solar installations by Wood Mackenzie [1].

However, the company faces challenges such as newly imposed tariffs expected to negatively impact gross margins by 2% in the second quarter and 4-6% in the second half of the year. The European market is also expected to decline year over year, presenting challenges for maintaining market share. Additionally, the company anticipates being approximately free cash flow breakeven for the full year due to the impact of tariffs [1].

References:
[1] https://www.gurufocus.com/news/2990030/susquehanna-adjusts-solaredge-sedg-price-target-amid-market-challenges-sedg-stock-news