On Monday, RBC Capital maintained its Sector Perform rating and $17.00 price target on Mobileye N.V. (NASDAQ:MBLY), following the company's investor event in Munich, Germany.
The event included a presentation of slides, one of which suggested that Mobileye might be nearing a significant nomination with a Japanese automotive manufacturer (OEM). The timeframe for the next nomination stage was noted as 2-3 months.
"We were not expecting a win announcement at the event, but the possibility that the company could be close is a positive. Expect shares to trade up on this development once digested," RBC said.
The analysis also highlighted potential nominations for Surround Advanced Driver Assistance Systems (ADAS) with both a European and a U.S. OEM, with the latter noted to be in the negotiation and decision-making phase, which precedes the nomination step. The anticipation of these developments has sparked investor interest, particularly regarding whether Mobileye would announce a win with an OEM for self-viewing (SV) capabilities at the event.
Although an award has not yet been confirmed, the progress with the Japanese OEM indicates that a win might be imminent. Mobileye's shares had seen an uptick leading up to the event, and the market's reaction to the news was uncertain.
Speculation surrounds which of the four major Japanese OEMs—Honda, Toyota (NYSE:TM), Nissan (OTC:NSANY), or Mazda—could be nearing a partnership with Mobileye. A nomination from Honda (NYSE:HMC) or Toyota is considered particularly noteworthy due to their substantial production volumes. In addition, there is curiosity about whether the U.S. OEM in talks for Surround ADAS could be General Motors (NYSE:GM) and if the European OEM on the verge of nomination could be either Stellantis (NYSE:STLA) or Renault (EPA:RENA).
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