Mobileye stock expected to rebound after strong Q2 results, BNP says

Investing.com - BNP Paribas (OTC:BNPQY) Exane has reiterated its Neutral rating and $14.00 price target on Mobileye N.V (NASDAQ:MBLY), expecting the stock to recover from Wednesday’s 9.2% decline. According to InvestingPro data, analyst targets for the stock range from $10 to $33, with the company currently appearing undervalued based on Fair Value analysis.

The research firm noted that Mobileye’s strong preliminary second-quarter results for 2025 should outweigh concerns related to Intel’s secondary offering of Mobileye shares.

BNP Paribas Exane believes Mobileye’s 2025 earnings are largely de-risked, with potential upside due to better-than-feared global light vehicle production.

The firm identified the company’s Drive and robotaxi initiatives as important catalysts for the stock, despite their minimal near-term earnings impact.

BNP expects market attention to focus on Mobileye’s initial autonomous vehicle rollouts with Volkswagen/Uber and Marubeni/Lyft partnerships planned for 2026, with any additional partnerships potentially serving as positive catalysts.

In other recent news, Mobileye Global Inc. announced a secondary public offering of 50 million shares of its Class A common stock, priced at $16.50 per share. This offering is being conducted by Intel Overseas Funding Corporation, a subsidiary of Intel Corporation (NASDAQ:INTC). Concurrently, Mobileye has agreed to repurchase approximately 6.23 million shares from the selling stockholder at the same price. Mobileye’s preliminary second-quarter results have shown promising growth, with expected revenue between $502 million and $506 million, indicating a 14-15% year-over-year increase. The company also projects an operating income of $98 million to $104 million, marking a 24-32% growth compared to the previous year.

Analysts have responded positively to Mobileye’s performance, with Loop Capital raising its price target to $24 from $20 while maintaining a Buy rating, and Wells Fargo (NYSE:WFC) increasing its price target to $24 from $18, maintaining an Overweight rating. Additionally, Mobileye has entered into a long-term supply agreement with Taiwan Semiconductor Manufacturing Company (TSMC) for its imaging radar and future generations of EyeQ products. This agreement diversifies its manufacturing partnerships, previously centered on STMicroelectronics. These developments reflect ongoing strategic maneuvers by both Mobileye and Intel, as Intel plans to convert 50 million Class B shares to Class A shares, maintaining its substantial ownership stake.

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