Buy Mobileye (MBLY) on 'Perplexing' Move Lower - Wells Fargo

November 17, 2016 6:47 AM EST
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: 7 | Down: 3 | New: 2
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Wells Fargo analyst Richard Kwas is telling clients to buy Mobileye N.V (NYSE: MBLY) on yesterday's weakness, calling the move down perplexing.

Kwas commented, "We would BUY yesterday's (11/16) weakness. The move down was perplexing, but our best guess is it related to investor uncertainty about the relevancy of Road Experience Management (REM). POSITIVE news flow should come out in the next few weeks (potentially days). Volkswagen REM announcement expected shortly and likely triggers finalization with several other OEMs in 2017. High short interest name. The stock is trading at less than 25x our 2018E adj. EPS (including $1.40 per share of net cash/short-term investments). Earnings CAGR expected to be 50% through 2019 (excluding meaningful economic benefit from Level 3-5 autonomous content)."

The firm maintained an Outperform rating and valuation range of $51-$54.

For an analyst ratings summary and ratings history on Mobileye N.V click here. For more ratings news on Mobileye N.V click here.

Shares of Mobileye N.V closed at $37.57 yesterday.

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