Mobileye stock price target lowered to $17 by Mizuho on near-term headwinds

Published 24/07/2025, 18:56
Mobileye stock price target lowered to $17 by Mizuho on near-term headwinds

Investing.com - Mizuho (NYSE:MFG) has lowered its price target on Mobileye N.V (NASDAQ:MBLY) to $17.00 from $18.00 while maintaining a Neutral rating on the stock, following the company’s recent quarterly results. According to InvestingPro data, the stock appears undervalued at its current price of $15.08, with analyst targets ranging from $12 to $33.

Mobileye reported second-quarter revenue of $506 million, exceeding both consensus estimates of $486 million and the company’s updated guidance of $504 million. The company has revised its fiscal 2025 revenue guidance upward to $1.79 billion from the previous $1.75 billion, representing 8% year-over-year growth. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 7.64, while holding more cash than debt on its balance sheet.

The updated guidance implies fourth-quarter 2025 revenue will decline approximately 20% quarter-over-quarter, despite light vehicle production expected to increase about 8% in the same period. Mizuho noted this conservative outlook, which factors in potential tariff and EV subsidy impacts, is likely contributing to downward pressure on the stock. Notably, InvestingPro data reveals 11 analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism despite near-term challenges. Get access to more exclusive insights and detailed analysis with an InvestingPro subscription.

Mobileye has increased its 2025 Supervision units forecast to approximately 40,000 units from its prior estimate of 20,000, driven by stronger-than-expected shipments for Zeekr 001/009 models outside China and Polestar (NASDAQ:PSNY) vehicles. The company also highlighted robotaxi projects with Volkswagen (ETR:VOWG_p) Moia using the ID.Buzz vehicle and with Japanese fleet manager Marubeni.

EyeQ shipments are recovering according to the company, with full-year shipments raised to approximately 34 million units, representing about 17% year-over-year growth following 2024 inventory adjustments at key customers. Mizuho acknowledged Mobileye’s continued leadership in advanced driver assistance systems while citing near-term macroeconomic headwinds affecting demand.

In other recent news, Mobileye N.V. announced preliminary second-quarter results that have led to various analyst updates. TD Cowen increased its price target for Mobileye to $22 from $18, citing positive inventory dynamics in the company’s pre-announcement. Loop Capital also raised its price target to $24 from $20, maintaining a Buy rating and highlighting the company’s growth profile. Meanwhile, BofA Securities adjusted its price target slightly downward to $18 from $19, following the preliminary results. BNP Paribas (OTC:BNPQY) Exane reiterated its Neutral rating with a $14 price target, expecting the stock to recover despite concerns over Intel (NASDAQ:INTC)’s secondary offering.

In other developments, Mobileye’s secondary public offering was priced at $16.50 per share, with Intel Overseas Funding Corporation selling 50 million shares of Mobileye’s Class A common stock. The offering includes an option for underwriters to purchase an additional 7.5 million shares, with the transaction expected to close on July 11, 2025, pending customary conditions. These recent developments reflect varied analyst perspectives and investor reactions to Mobileye’s financial outlook and corporate activities.

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