Analysts believe in mobile communications and expect growth up to 200%
2022.11.21 08:20
Analysts believe in mobile communications and expect growth up to 200%
Budrigannews.com – Mobileye (NASDAQ: ) shares rose more than 2% in premarket Monday after sell-side analysts began scrutinizing reports from the company, which develops advanced driver assistance systems (ADAS).
At least a dozen companies are starting to look at Mobileye, nine of which have a buy or equivalent rating. Bank of America, Wolfe Research and Morgan Stanley chose to stay on the sidelines.
Mobileye shares soared on their debut in late October after parent company Intel (NASDAQ: ) decided to price its initial public offering (IPO) at $17 billion, well below previous expectations. However, shares are up more than 30% since the IPO, giving it a market cap of nearly $23 billion.
The most bullish new reports come from analysts at Citi, who started with a buy rating and a price target of $77 a share, implying an upside potential of roughly 170% from Friday’s close. They also named Mobileye as Citi’s new top vendor choice.
“We have long believed that Mobileye is at the heart of the most refined incremental content loop ever seen in the industry’s scalable ADAS-AV product suite,” the analysts said in a note to clients.
Analysts expect Mobileye to top $50 billion in revenue by 2030, and “the domino effect of ADAS/AV adoption could create a catalyst-rich environment for the stock.” Even without autonomous vehicles (AVs), Michaeli Also think that MBLY’s price has met its price target.
Analysts at Bank of America, on the other hand, are less bullish on the company, with a Neutral rating and a price target of $34 per share.
“We remain concerned that the competitive landscape for ADAS/AV technology is extremely tough, that MBLY’s ‘black box’ approach may provide an opportunity for its competitors to gain market share, and that AV capabilities beyond Level 4 are unclear and there are Risks are U.S. export control restrictions on key semiconductor technologies,” analysts wrote in a note to clients.
