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On Wednesday, UBS analysts maintained a Neutral rating on Mobileye N.V (NASDAQ:MBLY) shares, with a consistent price target of $17.00. The stock, currently trading at $15.96, has shown strong momentum with a 14% gain in the past week. According to InvestingPro data, analyst targets for MBLY range from $11 to $33, reflecting mixed sentiment in the market. The decision follows Mobileye’s announcement of securing a Surround Advanced Driver Assistance Systems (ADAS) award with the Volkswagen (ETR:VOWG_p) (VW) Group, which is set to be integrated into VW’s forthcoming vehicle lineup based on their MQB platform. While Mobileye shows strong liquidity with a current ratio of 6.53 and holds more cash than debt, InvestingPro analysis indicates the company is yet to achieve profitability in the last twelve months.
Mobileye, a company specializing in ADAS technology, is expected to launch this new development in the coming years. The award, which aligns with predictions from their 2024 CMD presentation, is seen as a positive step, albeit not an unexpected one. Mobileye will supply its Surround ADAS platform, the EyeQ6 High chip, and mapping technologies for this project.
Valeo (EPA:VLOF), a company analyzed by UBS Analyst David Lesne, is designated as the Tier 1 supplier for the venture. They will be responsible for providing the Electronic Control Unit (ECU), sensors, and parking solutions necessary for the Surround ADAS functionality. This system will require the integration of 6 cameras and 5 radars to operate effectively.
The collaboration between Mobileye and VW Group represents a significant achievement for the company as it continues to expand its presence in the automotive industry. Mobileye’s technology is expected to enhance the safety and capabilities of VW’s vehicles, potentially setting a new standard for ADAS features in the market.
As the partnership progresses, the industry will watch closely to see the impact of Mobileye’s technology on the future of automotive safety and driver assistance systems. The maintained Neutral rating by UBS reflects a cautious optimism about the company’s growth prospects, balanced by a consideration of the challenges and competition in the ADAS market. Notably, InvestingPro analysis shows analysts expect Mobileye to turn profitable this year, with an EPS forecast of $0.29 for FY2025. For deeper insights into Mobileye’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Mobileye has reported several significant developments. The company announced a notable design win with Volkswagen Group’s mainstream brands for its Surround ADAS technology, which Raymond (NSE:RYMD) James projects could eventually contribute approximately $300 million in revenue. Raymond James has maintained its Outperform rating and $19 price target for Mobileye, highlighting the potential for future growth. Additionally, Point72 Asset Management, led by Steven Cohen, disclosed a new 5% stake in Mobileye, signaling confidence in the company’s prospects.
JPMorgan also adjusted its price target for Mobileye to $11, up from $10, while maintaining an Underweight rating, following Lyft (NASDAQ:LYFT)’s announcement of plans to launch autonomous robotaxis in Dallas by 2026 in partnership with Mobileye. The firm anticipates modest revenue contributions in 2026, with more substantial growth expected in later years. In governance news, Mobileye appointed Patrick Bombach to its Board of Directors, effective January 2025, as part of its commitment to corporate governance. These developments underscore Mobileye’s ongoing strategic initiatives and the increasing interest from institutional investors in its future trajectory.
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