JPMorgan Downgrades Mobileye N.V (MBLY) to Underweight

JPMorgan analyst Samik Chatterjee downgraded Mobileye N.V (NASDAQ: MBLY) from Neutral to Underweight with a price target of $10.00 (from $16.00).

The analyst comments "We are downgrading shares of MBLY to Underweight from Neutral as we expect the lower confidence in the volume ramp associated with SuperVision following replacement by an in-house solution at Zeekr as well as still limited ramp with Western OEMs to lead investor perception of Mobileye to move to an auto supplier with leverage to higher growth ADAS market, albeit closer to maturity in relation to both ADAS penetration as well as penetration of Mobileye. We are lowering our expectations in relation to ramp of SuperVision through to the end of the decade which leads us to materially lower our revenue and earnings forecasts for the out-year, even though the near-term outlooks are less changed on account of limited volume/ revenue contribution from Super Vision in 2025E. In the near-term, we expect the displacement of SuperVision by in-house solution at Zeekr and the lowered volume outlook for EVs, including following tariffs introduced by EU and North America, to drive SuperVision volumes to be flat to down y/y in 2025E and further hurt investor confidence in relation to the high-growth opportunity for the company. We are lowering our Dec-25 price target to $10 vs. $16 prior, as the lower confidence in the SuperVision volume ramp leads us to value Mobileye as a high-growth auto supplier justifying a modest premium to technology driven and high growth auto suppliers, rather than one with outsized growth and valuation premium."

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 $12.93 yesterday.

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