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Investing.com - Loop Capital has raised its price target on Mobileye N.V (NASDAQ:MBLY) to $24.00 from $20.00 while maintaining a Buy rating on the stock. The autonomous driving technology company, currently valued at $15.14 billion, has shown strong momentum with notable returns over the past three months, according to InvestingPro data.
The price target increase, announced Wednesday, represents a 20% upward revision from the firm’s previous valuation of the autonomous driving technology company.
Loop Capital’s new price target is based on the assumption that Mobileye shares will trade with an enterprise value at 10.0 times the firm’s fiscal year 2025 revenue estimate.
The research firm noted that this multiple is in line with other semiconductor companies that have similar revenue growth and margin profiles to Mobileye.
Mobileye, which specializes in advanced driver-assistance systems and autonomous driving technologies, continues to maintain its Buy rating from Loop Capital, indicating the firm’s positive outlook on the company’s future performance.
In other recent news, Mobileye has reported positive preliminary second-quarter earnings, expecting revenue between $502 million and $506 million, marking a 14-15% increase from the previous year. This growth is attributed to higher demand for its EyeQ system-on-chip products. The company also anticipates adjusted operating income ranging from $98 million to $104 million, reflecting a year-over-year increase. Concurrently, Intel (NASDAQ:INTC), Mobileye’s majority shareholder, announced a secondary offering of 45 million Mobileye Class A shares, with plans to convert an additional 50 million Class B shares into Class A shares. Mobileye has agreed to repurchase $100 million of its stock from Intel as part of this transaction.
Wells Fargo (NYSE:WFC) has raised its price target for Mobileye to $24, maintaining an Overweight rating, following the company’s strong earnings outlook. In contrast, Mizuho (NYSE:MFG) Securities has adjusted its price target to $15, maintaining a Neutral rating, citing potential headwinds from tariffs and demand uncertainties. Additionally, Mobileye has entered into a long-term supply agreement with Taiwan Semiconductor Manufacturing Company for its imaging radar and future EyeQ products, expanding its manufacturing partnerships. The company continues to explore advancements in its SuperVision technology and robotaxi projects, despite facing competition in the autonomous driving sector.
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