Mobileye stock price target raised to $22 from $18 at TD Cowen on positive pre-announcement

Investing.com - TD Cowen raised its price target on Mobileye N.V (NASDAQ:MBLY) to $22.00 from $18.00 on Friday, while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for Mobileye currently range from $10 to $33, with the stock trading near $16.39 after a significant 12.6% decline over the past week.

The price target increase follows Mobileye’s positive pre-announcement of second-quarter results, which reflected "better-than-feared inventory dynamics," according to TD Cowen.

Intel (NASDAQ:INTC) sold 50 million MBLY shares, as announced in an 8-K filing earlier this week, reducing but maintaining a significant ownership position of approximately 80% in the company.

TD Cowen noted that while concerns may linger regarding Intel’s large ownership stake and potential tariff-related pull-ins, the firm sees upside potential to second-half and full-year results.

The analyst cited "the conservative bar set last quarter" as a factor in their optimistic outlook for Mobileye’s performance in the coming periods.

In other recent news, Mobileye has reported strong preliminary second-quarter results for 2025, with expected revenue between $502 million and $506 million, marking a 14-15% increase from the previous year. The company also anticipates operating income of $98-$104 million, reflecting a 20%-21% margin and significant year-over-year growth. Concurrently, Mobileye has entered into a long-term supply agreement with Taiwan Semiconductor Manufacturing Company (TSMC) for the production of its imaging radar and future EyeQ products. In a significant financial move, Intel announced a secondary offering of 50 million Mobileye Class A shares, priced at $16.50 per share, with an option for underwriters to purchase an additional 7.5 million shares. Mobileye has agreed to repurchase approximately 6.23 million shares from Intel as part of this offering. Loop Capital and Wells Fargo (NYSE:WFC) have both raised their price targets for Mobileye to $24, citing the company’s growth profile and strong second-quarter performance. BNP Paribas (OTC:BNPQY) Exane maintained a Neutral rating on Mobileye, highlighting the company’s Drive and robotaxi initiatives as potential catalysts. These developments underscore Mobileye’s strategic maneuvers in both financial and operational sectors.

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