Why This Mobileye Analyst Prefers To Stay On The Sidelines, Even As The Rest Are Bullish

Mobileye Global Inc’s MBLY shares traded higher in the premarket on Monday after several analysts began coverage on the stock with positive ratings.

However, the company’s peers could increase their share in the highly competitive market for ADAS/AV technology, according to BofA Securities.

The Mobileye Global Analyst: John Murphy initiated coverage of Mobileye Global with a Neutral rating and a price target of $34.

The Mobileye Global Thesis: The company is poised to benefit from the “mega-trend towards ADAS & autonomy,” given its “industry leading technology and strong incumbent position, including nearly 70% market share of ADAS fitted production,” Murphy said in the initiation note.

Check out other analyst stock ratings.

“It is also uniquely positioned among AutoTech companies in that it is already self-funding with its strong and positive FCF,” the analyst wrote.

He added, however, that Mobileye Global’s closest peers, including Qualcomm Inc QCOM and NVidia Corporation NVDA, “appear to be gaining more traction with OEMs.”

“We remain concerned that the competitive landscape for ADAS/AV technology is incredibly fierce, and MBLY’s “black box” approach could open up opportunities for its competitors to gain share,” Murphy further wrote.

It appears that Murphy is the only analyst who's lukewarm on MBLY. Benzinga analyst ratings data shows a consensus BUY rating on the stock.

MBLY Price Action: Shares of Mobileye Global had declined by 2.46% to $27.72 at the time of publication Monday.

Photo: Courtesy of mobileye.com