Deutsche Bank Starts Mobileye N.V (MBLY) at Buy

Deutsche Bank initiated coverage on Mobileye N.V (NYSE: MBLY) with a Buy rating and a price target of $45.00.

Analyst Rod Lache said, "Based on the effectiveness of technologies such as Autonomous Emergency Braking, there is a huge regulatory push for “Active Safety” in cars (i.e.collision avoidance as opposed to collision mitigation). We expect AEB to gain nearly 100% penetration in developed markets, and 80% global penetration by 2025, vs. ~6% global penetration in '14."

"We expect Mobileye’s revenue to double from 2014 ($131 MM) to 2016 ($343 MM), double again by 2018 ($736 MM), nearly double again by 2020 ($1.3 bn), and nearly double again by 2025 ($2.5 bn). And we believe that the value embedded in MBLY’s shares should become increasingly apparent as investors gain appreciation for the company’s profit/cash flow profile (gross margins of ~75%, EBIT of ~60%, net income/free cash flow margin of ~50%). Our 12- month target of $45 is based on a ~25x multiple applied to our 2020 est, discounted back to year-end 2015 at 10% per year," he said.

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 $38.19 yesterday.

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