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Fly News Breaks for December 4, 2015
AMBA, GPRO
Dec 4, 2015 | 06:59 EDT
Piper Jaffray analyst Erinn Murphy attributes Ambarella's (AMBA) weaker than expected Q4 guidance to softness in the wearable sports camera market. Ambarella is a key supplier of video compression and image processing semiconductors for GoPro (GPRO), the analyst points out. A correlation analysis between GoPro revenue and Ambarella revenue on a one quarter lag suggests downside to GoPro's Q4 revenue, Murphy tells investors in a research note. She cut her Q4 revenue estimate for GoPro to $472M from $488M and earnings per share estimate to 28c from 34c. Murphy also cut her FY16 estimates for the action camera maker. She has an Underweight rating on GoPro with a $15 price target.