Analyst Remains Cautious on Mobileye (MBLY) as Infineon Acquires LiDAR Company Innoluce

October 11, 2016 3:23 PM EDT
Get Alerts MBLY Hot Sheet
Price: $42.18 --0%

Rating Summary:
    18 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Trade MBLY Now!
Join SI Premium – FREE

Get daily under-the-radar research with's Stealth Growth Insider Get your 2-Wk Free Trial here.

Global Equities Research affirmed its outlook on Mobileye (Nasdaq: MBLY) following news that Infineon has acquired solid state LiDAR company Innoluce.

Analyst Trip Chowdhry noted the following on Tuesday:

Fundamental problem with MBLY technology is that one cannot get the location accuracy of 1 cm to 1.5 cm using MBLY Camera technology, which is essential for driverless cars

  • LiDAR is the only technology that can provide the location accuracy of 1 cm to 1.5cm
  • TSLA is creating their own LiDAR sensors, and its cost point could be closer to $69...Cameras play a tertiary role and not a primary role

We will answer this question by series of questions...

  • MBLY is a component provider, Bosch is the part supplier, and Autos are the end product ...Question for investors, why do you think MBLY has the pricing power in the above value chain?
  • Can you name any single Auto component provider, who is a single trick pony like MBLY, and has revenues of $1 Billion ...we cannot find any company...what gives one a confidence that MBLY can generate huge revenues on Obsolete technology
  • MBLY revenues are probably okay for the next 6 to 8 months...beyond that we have doubts ...this is the other Violin Memory (VMEM) in making ...lot of Noise, but zero fundamentals

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

Trip Chowdhry

Add Your Comment