Barclays betting on Mobileye with target price $60
2023.02.15 09:14
Barclays betting on Mobileye with target price $60
By Kristina Sobol
Budrigannews.com – Mobileye was first covered by Barclays (NASDAQ:). analysts believe that the autonomous vehicle company is the auto supplier in Barclays’ coverage with the best growth and margin prospects ahead, earning an Overweight rating and a $60 price target.
“We launch with an Overweight rating as we believe MBLY is the highest-quality pure-play in the market leveraged to the secular megatrends of active safety/autonomous vehicles, which should drive robust earnings growth through at least the end of the decade,” the analysts wrote in a note.
In addition, we remain optimistic regarding the catalyst backdrop this year, which includes the potential for MBLY to exceed its FY23 guidance and the ongoing positive momentum in SuperVision awards.
Over the course of more than two decades, MBLY has accumulated more than 200 petabytes of actual driving data. With content on 13 of the top 15 global automakers and a market share of 60-70% in recent years, MBLY’s dominant position in the vision ADAS market is based on this software and data advantage.
Due to increased base ADAS penetration and SuperVision, analysts anticipate strong top-line growth in 2023. Due to the hardware content, they anticipate some gross margin compression as a result of SuperVision’s ramp, which is margin dilutive compared to base ADAS. In total, Barclays’ Adjusted Operating Income still exceeds MBLY’s expectations.
On Wednesday, MBLY shares are up 0.11 percent in pre-market trading.
