Buy Mobileye, Delphi Into CES 2017

The next Consumer Electronics Show, where companies unveil the latest technology they have to offer the world, is scheduled to be held in January in Las Vegas. Citi analysts recommended buying shares of Mobileye NV MBLY and Delphi Automotive PLC DLPH ahead of the event.

The analysts reiterated Buy ratings on both companies, citing “a favorable risk/reward setup…heading into CES next month.” They mentioned the reasons for this as:

• Potential For Better News Flow: Mobileye and Delphi are expected to unveil their autonomous driving system (CSLP), while Mobileye will also be presenting on Artificial Intelligence technology, breakthroughs and alliances.
• Stock Underperformance: Delphi Automotive’s shares had lost 22 percent year-to-date, mainly due to slower-than-expected organic growth, although this has been strong with guidance of 6–7 percent growth for 2016 and mid-single digit growth for 2017. Mobileye’s shares are down 16 percent year-to-date, primarily due to concerns over the timing of completion of REM contracts.

Image Credit: By U.S. Embassy Tel Aviv (Ambassador's visit to Mobileye) [CC BY 2.0], via Wikimedia Commons