Mobileye has the potential to further elevate its reputation in the autonomous and assisted-driving world, according to Deutsche Bank. That could mean good news for the stock. Analyst Emmanuel Rosner initiated coverage on the stock as a buy. His price target of $48 implies the stock could gain 52.1% from Tuesday’s close. He said the company has the right technology to gain market share within autonomous vehicles similar to the way it has built its presence in the driver-assisted space. Further, customer reception is gaining momentum, he said, as six carmakers have already signed up for one of its hands-off driving products called SuperVision. “Mobileye is at the start of considerable revenue and earnings acceleration, in our view, as automakers and mobility providers adopt its cost-effective turnkey solutions which scale up to ever-higher levels of autonomy,” Rosner said in a Tuesday note to clients. The stock gained roughly 8% in trading Wednesday morning. It is down 3% in 2023. Mobileye began trading on the Nasdaq through an initial public offering last fall , returning to the public market after going private following Intel ‘s acquisition of the company in 2017. MBLY 1D mountain Mobileye stock Rosner expects Mobileye’s revenue to hit nearly $6 billion by 2026 and exceed $18 billion by 2030 — up from the $1.8 billion revenue seen in 2022. Per-share earnings should grow similarly from 72 cents in 2022 to $2.40 by 2026 and nearly $8 in 2030. But Rosner did note that 2023 per-share earnings could be flat or down compared with 2022 due to initial margin pressure from the ramp-up of SuperVision and other selling and administrative expenses. He also called Mobileye’s crowdsourced live map “superior.” Rosner said that technology positions the company well against auto suppliers, chipmakers and carmakers in the autonomous vehicle space and could help it become a Tier 1 supplier. To be sure, Rosner said Mobileye’s valuation is considered “rich” in the near term, but said it’s deserved considering its technology, customer relationships and potential opportunity. He also said there’s also the potential for the company to secure relationships with large automakers such as Ford , Porsche and Audi. — CNBC’s Michael Bloom contributed to this report.
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