Mobileye N.V (MBLY) Mentioned Positively at RBC Capital
RBC Capital analyst Joseph Spak raised the price target on Mobileye N.V (NASDAQ: MBLY) to $53.00 (from $48.00) while maintaining a Outperform rating.
The analyst comments "MBLY is now in advanced talks with 10 OEMs representing 34% of the industry in terms of volume. The company assigns probability of winning each of these OEMs at over 50%, with one OEM at 99% probability, and expecting many of these to be confirmed over the next 5 months. This list of 10 OEMs includes 1 US and 2 European, branching out from its current exposure to Chinese OEMs. In addition to these 10 OEMs, there are a further group of 4 OEMs representing 15% of industry volumes that are in early stages of negotiation. Thus, MBLY is engaged with OEMs for SuperVision implementation representing 49% of industry volumes. This informs management's view that at least 15% of vehicles will offer a SuperVision-like solution within the next few years. Given the higher ASPs for SuperVision on ~50% gross margins, the focus for investors is on the resulting revenue inflection as this business ramps in 2025/26, overshadowing the near-term outlook."