Street Calls of the Week
Investing.com - Mizuho has lowered its price target on Mobileye N.V (NASDAQ:MBLY) to $15.00 from $17.00 while maintaining a Neutral rating on the autonomous driving technology company. With the stock currently trading at $14.09, InvestingPro analysis suggests the company is currently undervalued, with analyst targets ranging from $12.00 to $31.10.
The price target adjustment follows Mobileye’s September quarter revenue report of $504 million, which slightly exceeded consensus estimates of $485 million. The company has raised its full-year 2025 revenue guidance to $1.865 billion from $1.79 billion previously, representing 13% year-over-year growth. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 6.91 and holds more cash than debt on its balance sheet, though it’s currently not profitable over the last twelve months.
Despite the improved annual outlook, Mobileye guided for fourth-quarter revenue of approximately $417 million, below consensus expectations of $435 million and representing a 17% quarter-over-quarter decline. This forecast comes despite light vehicle production being expected to increase about 5% in the same period. For deeper insights into Mobileye’s financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s competitive position and growth drivers.
The company has increased its 2025 SuperVision unit forecast to 50,000 from 40,000 previously, and raised its EyeQ shipment projection to 35.3 million units. However, Mizuho noted potential headwinds for 2026, including a 3% year-over-year decline in light vehicle production among Mobileye’s top 10 customers.
Mobileye also revealed it expects to announce a robotaxi partnership with Uber or Lyft "soon," with Eyes-Off technology anticipated by 2027, and disclosed a new U.S. Tier-1 OEM win for its EyeQ6-H surround ADAS system for mass-market vehicles, which Mizuho estimates will begin production in 2028 or later.
In other recent news, Mobileye Global Inc. announced its third-quarter 2025 earnings results, meeting analyst expectations with an earnings per share (EPS) of $0.09. The company surpassed revenue projections by reporting $504 million, compared to the anticipated $485 million. Additionally, Mobileye raised its revenue guidance, indicating positive future prospects. Despite this encouraging financial performance, the stock experienced a decline in pre-market trading. These developments reflect the company’s ongoing efforts to align with market expectations and adjust its revenue outlook. Investors and analysts will likely continue to monitor Mobileye’s performance in the coming quarters.
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