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: $36.19 -0.39%

Rating Summary:
    16 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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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


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