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On Thursday, Mizuho (NYSE:MFG) Securities adjusted its stance on Mobileye N.V. (NASDAQ:MBLY), reducing the price target to $15 from the previous $16 while maintaining a Neutral rating on the stock. The adjustment comes after the company revealed its first-quarter earnings, reporting a top-line of $438 million, slightly above the consensus estimate of $434 million. Mobileye also confirmed its future revenue guidance for the fiscal year 2025, aiming for $1.75 billion, which aligns with the consensus projection of $1.74 billion, indicating an approximate 5% year-over-year increase. According to InvestingPro data, the company’s stock has shown resilience with a significant 10.92% return over the past week, despite facing broader market challenges. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with analysts maintaining price targets ranging from $11 to $33.
Mobileye, known for its advanced driver-assistance systems, has not observed any significant changes in order patterns in anticipation of the auto tariffs set to commence on May 3. The company’s conservative forecast for the second half of 2025 reflects uncertainties in demand. Despite these concerns, Mobileye shared several positive updates, including the initiation of robotaxi projects in partnership with ride-hailing services such as Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), scheduled for the second half of 2026. However, the company also acknowledged the growing competition in this domain from players like Waymo and Tesla (NASDAQ:TSLA). InvestingPro data reveals the company maintains a strong financial position with a healthy current ratio of 6.53 and more cash than debt on its balance sheet, providing stability during this transitional period.
The company’s EyeQ chip technology continues to see growth, with expected shipments of approximately 31.9 million units for the year, suggesting a 10% year-over-year growth. Additionally, Mobileye is working on its SuperVision technology, with projections for about 18,000 units in the fiscal year 2025, which is below the consensus estimate of 23,000 units. The first demonstrations of this technology in Audi and Porsche vehicles are anticipated to be shipped in the second half of 2025, with revenue contributions expected to ramp up in 2026, including partnerships with two of the top 10 global automotive OEMs.
In his commentary, the Mizuho analyst expressed caution, attributing the more conservative price target to potential headwinds from tariffs and demand uncertainties that could impact the company’s outlook for the latter half of 2025. The analyst stated, "We believe MBLY is not seeing any pull-ins ahead of auto tariffs starting May 3, but 2H25E demand uncertainty is driving a conservative outlook." The revised estimates and price target reflect a cautious approach amidst these potential challenges. While the company isn’t currently profitable, InvestingPro analysts forecast a return to profitability this year, with an expected EPS of $0.29 for fiscal year 2025.
In other recent news, Mobileye announced securing a Surround Advanced Driver Assistance Systems (ADAS) award with the Volkswagen (ETR:VOWG_p) Group, which is expected to be integrated into VW’s upcoming vehicle lineup. Analysts at Raymond (NSE:RYMD) James maintained an Outperform rating with a $19.00 price target, highlighting the design win as a pivotal achievement that could generate approximately $300 million in revenue once fully implemented. UBS analysts also maintained a Neutral rating with a $17.00 price target, noting the partnership with VW as a significant step for Mobileye. Meanwhile, Barclays (LON:BARC) downgraded Mobileye’s stock rating from Overweight to Equalweight, reducing the price target to $14.00 due to competitive pressures and delayed revenue realization from key partnerships.
In corporate developments, Mobileye announced the resignation of board member Christine Pambianchi, linked to her departure from Intel Corporation (NASDAQ:INTC). The announcement was made via an 8-K filing with the SEC, with no immediate replacement named. Additionally, Steven Cohen’s hedge fund, Point72 Asset Management, disclosed acquiring a new 5% stake in Mobileye, signaling a vote of confidence in the company’s future prospects. This acquisition was revealed in a 13G filing with the SEC and has been interpreted as a positive signal by the market. These recent developments highlight the ongoing interest and strategic movements surrounding Mobileye in the competitive ADAS and autonomous driving industry.
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