Barclays downgrades Mobileye, cites lack of progress on advanced wins

Investing.com -- Barclays downgraded Mobileye to Equal Weight from Overweight and cut its price target to $9 from $14 per share in a note on Wednesday, saying the company has not landed enough advanced contracts to support its growth case.

Analyst Dan Levy upgraded the stock earlier this year but said the larger proof points have not materialized. Mobileye shares are down 28% this year, while the S&P 500 has gained 12%.

Mobileye has won some business, including a cloud-enhanced driver assistance deal with Stellantis and a win with Mahindra, noted Levy.

It has also beaten expectations and raised its 2026 outlook in each of the past two quarters. However, the analyst said "MBLY is not winning advanced programs quickly enough to validate the longer-term ASP and growth thesis."

He flagged growing competition from China, where rival Horizon Robotics now holds about half the market for Level 2 driver assistance. Mobileye remains second with about 25%. With Chinese vehicle exports on track for 10 million units this year, Levy sees a risk that those competitors follow domestic carmakers overseas.

Questions have also emerged over Volkswagen, Mobileye's most important customer, after a report suggested the carmaker may consider another technology partner for its robotaxi unit MOIA. Barclays said the report is unconfirmed but adds uncertainty.

Levy also pointed to Mobileye's CEO transition as an overhang, with founder Amnon Shashua stepping down as the company pushes into autonomous vehicles and robotics.

Original Article

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