Mobileye pops as Citi sees 'potentially catalyst rich' period over next 6 to 12 months
Sep. 20, 2023 10:46 AM ET
Mobileye Global Inc. (MBLY)
By: Chris Ciaccia,SA News Editor
3 Comments
 Mario Tama
Mobileye (NASDAQ: MBLY) sharesrose more than 6%on Wednesday as investment firm Citi said it sees a "potentially catalyst rich" period over next the next 6 to 12 months.
Analyst Itay Michael, who has a buy rating and $72 price target on Mobileye ( MBLY), said recent new business momentum and other data points suggest there has been a "domino effect" of new business in both advanced driver assistance systems and autonomous vehicles that is starting to play out.
Michael also said there have been new wins for its Chauffeur level 4 autonomous systems that have helped, along with recent wins in its SuperVision, or SV, business.
"We believe this momentum is being driven both by Mobileye’s recent successes with SuperVision as well as heightened OEM competitive pressures creating the sort of 'pencils down' moment we’ve previously described," Michael wrote in an investor note.
Looking ahead, Michael said if there is an acceleration in new business awards from the nine automakers in Mobileye's ( MBLY) pipeline (including GM, Honda and Toyota), as well as a backfill of that pipeline from other large automakers, additional wins for its Chauffeur Level 4 software, then it's likely that estimates and valuation would "significantly improve."
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