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On Tuesday, Barclays (LON:BARC) analyst Dan Levy adjusted the firm’s stance on Mobileye N.V. (NASDAQ:MBLY), moving the rating from Overweight to Equalweight and significantly reducing the price target to $14.00, down from $22.00. The downgrade comes as the stock has declined over 35% year-to-date and nearly 59% over the past year. According to InvestingPro analysis, the stock appears undervalued at current levels. Levy pointed to a limited catalyst path for the company’s stock in the near term.
Levy noted that while Mobileye could announce new advanced award wins, including a potential Surround ADAS award with a D3 OEM, which is believed to be General Motors (NYSE:GM), and a possible SuperVision award with Hyundai (OTC:HYMTF) Kia, the overall outlook for additional awards is less certain. Despite competitive pressures, InvestingPro data shows the company maintains strong financial health with more cash than debt and a healthy current ratio of 6.53. The analyst highlighted that the competition in the hands-free ADAS market has intensified, as evidenced by Nissan (OTC:NSANY)’s decision to choose Wayve for its next-generation ADAS system. This development was particularly impactful for Mobileye, which had indicated at its December 2024 CMD that it was close to securing a SuperVision award with Nissan.
The downgrade also reflects concerns about the timing of revenue realization from Mobileye’s existing deals. Although Mobileye has secured Surround ADAS and SuperVision/Chauffeur award wins with the Volkswagen (ETR:VOWG_p) Group, these programs are not expected to begin ramping up until the second half of 2026. Consequently, their contribution to the company’s financial estimates is likely to be more pronounced in 2027.
Levy’s commentary underscores the challenges Mobileye faces in the competitive ADAS market. The analyst’s outlook suggests that while the company has made progress with some automotive manufacturers, the benefits of these partnerships will take time to materialize in the company’s financial performance.
In summary, Barclays’ revised view on Mobileye reflects a more cautious outlook on the company’s near-term growth prospects due to competitive pressures and delayed revenue realization from key automotive partnerships. With the company’s next earnings report due on April 24, investors seeking deeper insights can access comprehensive analysis and additional metrics through InvestingPro, which features detailed financial health scores and exclusive ProTips for informed decision-making.
In other recent news, Mobileye has been active with several significant developments. Mobileye announced a new Surround Advanced Driver Assistance Systems (ADAS) award with Volkswagen Group, which will be integrated into VW’s upcoming vehicle lineup. This collaboration involves Mobileye supplying its EyeQ6 High chip and mapping technologies, with Valeo (EPA:VLOF) providing additional components. In a related development, Raymond (NSE:RYMD) James maintained its Outperform rating on Mobileye with a $19 price target, noting the potential for substantial future revenue from this design win.
UBS analysts also maintained a Neutral rating for Mobileye, with a price target of $17, highlighting the strategic importance of the VW partnership. Meanwhile, Point72 Asset Management, led by Steven Cohen, acquired a 5% stake in Mobileye, marking a significant investment and signaling confidence in the company’s prospects. Additionally, JPMorgan raised its price target for Mobileye to $11 while maintaining an Underweight rating, following Lyft (NASDAQ:LYFT)’s announcement of a partnership with Mobileye for robotaxi services starting in 2026.
Furthermore, Mobileye announced that board member Christine Pambianchi will resign in April 2025, following her departure from Intel (NASDAQ:INTC), which holds a controlling interest in Mobileye. These developments indicate Mobileye’s active engagement in strategic partnerships and investments as it continues to navigate the competitive landscape of the autonomous driving industry.
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