Mobileye Vs. Tesla And NVIDIA: What's Common? Analyst Says Mobileye Can Exercise Pricing Power Like Others

Loop Capital analyst Ananda Baruah maintains Mobileye Global Inc MBLY with a Buy rating and raises the price target from $45 to $55.
The analyst's work suggests key MBLY trends continue to manifest, which indicates the company is tracking to guidance with the opportunity for Street numbers to increase through 2023.
For context, the analyst likes investing in best-of-breed into strong, structural long-term societal trends and views autonomous and MBLY of this kind.
Moreover, MBLY, already the 70% share leader in "Phase 1" (Eyes-on Hands-on ADAS Driver Assist, or L1/L2), offers robust capability across the autonomous spectrum and has an opportunity to become synonymous with autonomous.
MBLY is shifting from pure volume to a combination of volume and higher content per vehicle. In 2022 1/3 of the revenue growth came from higher ASP products.
SuperVision with ZEEKR (China) is a significant catalyst for OEM interest.
For those concerned about macro, since 2018, MBLY revenue is up 170% vs. global production down 13%.
The analyst continues looking for the average system price to increase. SuperVision is the main driver.
For conservatism, MBLY assumes EyeQ volume is somewhat below customer commitment.
For SuperVision, MBLY assumes 100% growth versus 96K units in 2022.
The gross margin is ~35%, with a path to 50%. The analyst sees 2H2023 SuperVision revenue upside potential from recognizing Zeeker non-highway module recognition.
The analyst currently values MBLY, in line with current "unicorn" large-cap tech companies Nvidia Corp NVDA and Tesla Inc TSLA )) which are making a significant technological and societal impact. He believes MBLY can average ~35% revenue growth in coming years vs. NVDA at 25% (Street) and TSLA at 30% Street.
Price Action: MBLY shares traded higher by 0.45% at $45.02 on the last check Wednesday.

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