Morgan Stanley Places $100 Bullish Target On Mobileye

Analysts at Morgan Stanley placed an Overweight rating and $100 bullish case price target on Mobileye MBLY.

Analysts feel Mobileye is the only “pure play” in the autonomous driving industry and could achieve 50 percent or more compound annual growth rate (CAGR).

Ravi Shanker feels that if Mobileye can maintain its 80 percent market share, the $100 price level is easily attainable by 2020. The analyst noted no annual price reductions, stable margins and penetration into the Chinese market as areas of growth.

Risks involved for Mobileye include the emergence of new competitors, invention of new software, deteriorating automotive cycle and uncertainty of its software being adopted in the market.

Shares of Mobileye recently traded at $44.60, up 1.6 percent.