Mobileye Has Upside Backed By Automotive ADAS Leadership As Supply Chain Recovery Kicks In, Analysts Say

Mizuho analyst Vijay Rakesh initiated coverage on Mobileye Global Inc MBLY with a Buy rating and a price target of $35.

Mobileye is a leader in the automotive ADAS industry. It has a ~70% market share (and growing) of camera-based ADAS with an AI-driven training platform, crowd-sourced mapping, and radar and LiDAR for redundancy. 

The company has built deep relationships with most major auto OEMs and has a strong product portfolio. The company is well-positioned to capture a potential $480 billion TAM, up 30X from CY22-30E, Rakesh wrote.

Needham analyst Rajvindra Gill initiated coverage on Mobileye with a Buy rating and a price target of $40. 

Over the next five years, MBLY could benefit from the inevitable transition to semi-autonomous and, eventually, fully-autonomous vehicles, with design wins already secured with several leading OEMs. This transition will elevate blended ASPs and increase content per vehicle. 

Citigroup analyst Itay Michaeli initiated coverage on Mobileye with a Buy rating and a price target of $77. The company's competitive advantages have only grown in recent years, led by an innovation-data loop and a highly scalable ADAS-AV product suite. 

Michaeli sees 2030E revenue of >$50 billion and expects a domino effect of ADAS and AV adoption to create a catalyst-rich environment for the stock. 

RBC Capital analyst Joseph Spak initiated coverage on Mobileye with an Outperform rating and a price target of $41. Over the coming years, growth would be driven by higher content L2+ SuperVision product. 

Spak sees scope for further growth in the latter half of the decade and "low-cost" optionality from autonomous.

Raymond James analyst Brian Gesuale initiated coverage on Mobileye with a Strong Buy rating and a price target of $50.

 A combination of fast-paced ADAS adoption, deeper penetration of a $40 billion TAM, and rebound in auto production as supply chain constraints dissipate and provide the foundation for ~40% sales CAGR from 2022-26. 

In addition to being a growth stock, its proprietary solutions and high barriers to entry create an attractive model that supports gross margins in the ~70% range, 30-40% EBITDA margin range, and annual FCF generation at ~$400 million.

Price Action: MBLY shares traded lower by 4.01% at $27.28 on the last check Monday.