Oppenheimer: Mobileye to ‘steadily gain share of OEMs’

Investing.com — Oppenheimer initiated coverage of Mobileye with an Outperform rating and a price target of $28, citing the company’s pivotal role in the automotive industry’s shift towards autonomous capabilities. 

According to the analysts, “While select vertically-integrated players will likely emerge in an autonomous future, we believe MBLY will be the key enabler of most legacy OEMs delivering autonomous functionality.”

As the global light-duty vehicle industry moves towards lower emissions and greater consolidation, autonomous features are becoming a critical competitive factor for individual vehicle sales. 

Oppenheimer emphasizes that “incremental levels of autonomous capability will be a key battleground for individual vehicle sales prior to a longer-term transition to fleet-based autonomous vehicles as a primary mode of transportation.”

The analysts forecast that Mobileye will “steadily gain share of OEMs while driving incrementally higher content per vehicle at those customers.” 

This is expected to position the company as a central player in supporting traditional automakers in their autonomous initiatives.

Oppenheimer’s price target of $28 is based on a valuation of 28.4 times the projected 2027 non-GAAP earnings per share of $1.08, discounted at a rate of 10%. 

Oppenheimer concluded that it expects MBLY to “continue to grow topline low-mid-teens annually, driven by incremental system shipments and ASP appreciation.”

They also “see Chauffer and Drive product launches in 2027 accelerating topline growth to the low 20%s.”