On Wednesday, Needham reiterated its Buy rating on shares of Mobileye N.V. (NASDAQ:MBLY) with a consistent price target of $20.00, following the company's Analyst Day held on December 9 in Munich, Germany.
The firm highlighted two significant updates that point towards a positive trajectory for the autonomous vehicle technology provider. According to InvestingPro data, analyst targets for MBLY range from $10 to $33, with 8 analysts recently revising their earnings expectations upward.
During the event, Mobileye showcased its currently-shipping SuperVision technology, which allows for eyes-on, hands-off driving, and its pre-production Drive rides designed for robotaxi services. The demonstrations left a strong impression, reinforcing confidence in the future of autonomous driving.
A key takeaway from the event was the announcement that Mobileye is in the final stages of negotiation with two major original equipment manufacturers (OEMs). One is a Japanese OEM, speculated to be either Honda (NYSE:HMC) or Mazda, for the implementation of SuperVision, and the other is a European OEM for the first Surround Advanced Driver-Assistance Systems (ADAS) nomination.
Moreover, Mobileye disclosed that it has over 250 million Base ADAS units booked. This figure surpasses the 190 million units already shipped and suggests a future awarded core business valued at approximately $12.5 billion, with less than 10% of that business coming from China.
While the company maintains strong liquidity with a current ratio of 5.8 and holds more cash than debt, InvestingPro analysis indicates revenue declined by 10.26% in the last twelve months. The recent performance of Mobileye's stock has been strong, likely buoyed by favorable regulatory sentiment and the perception that the company's financial estimates may have reached a lower threshold.
The anticipation of formal nominations is expected to serve as the next catalyst for Mobileye, potentially reinforcing the company's position in the rapidly evolving autonomous driving market. With analysts predicting profitability this year despite current challenges, investors seeking deeper insights can access comprehensive analysis and 11 additional key metrics through InvestingPro's detailed research reports.
In other recent news, Mobileye N.V. reported mixed third-quarter earnings with an 11% sequential revenue increase from Q2, but an 8% year-over-year decline due to a 9% drop in EyeQ volumes. Analysts from various firms, including Canaccord Genuity and RBC Capital, have maintained positive stances on the company's stock, citing its leadership in the autonomous vehicle technology market and potential for long-term growth.
In recent developments, Mobileye is reportedly close to securing a contract for its Supervised Vision technology with a Japanese original equipment manufacturer (OEM), according to RBC Capital. Moreover, the company has engaged with eight OEMs for its Supervised products and four OEMs for its autonomous driving technology, Eyes Off/No Driver.
Mizuho (NYSE:MFG) Securities maintained a neutral stance on Mobileye, highlighting a potential new SuperVision contract with a Japanese automaker and a Surround ADAS deal with a European OEM. However, Mizuho expressed caution regarding the 2025 global automotive growth outlook, citing tariff risks.
Raymond (NS:RYMD) James holds a $19 target on Mobileye shares, noting the company's advancements in autonomous driving technology. Mobileye also reported changes in board composition, with Mr. Frank D. Yeary resigning from the Audit Committee of Mobileye Global (NASDAQ:MBLY)'s board for the duration of his tenure at Intel (NASDAQ:INTC).
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