Mobileye Global falls even as Tigress starts with buy rating, sees 38% upside
Mario Tama

Mobileye Global (NASDAQ:MBLY) shares gave up earlier gains and fell more than 1% on Monday as investment firm Tigress started coverage on the semiconductor company, noting its "leading position" in both advanced driver assistance systems and autonomous vehicle technology should help it capitalize on the "massive market opportunity" in front of it.
Analyst Ivan Feinseth started Mobileye (MBLY) with a buy rating and a $44 price target, implying some 38% upside form current levels, noting that the global auto industry is set to under a "massive acceleration in change" due to both electric vehicles as well as advanced driver assistance systems, or ADAS, and autonomous vehicles, which should boost autonomous-mobility-as-a-service and the robotaxi industry.
"Mobileye's recent IPO, unlocking it from being embedded in a large semiconductor company, makes it the only pure play to invest in these emerging technologies," Feinseth wrote in a note to clients, adding that its peers, Nvidia (NVDA) and Qualcomm (QCOM), are "formidable" but don't purely focus on automotive.
Mobileye (MBLY) was partially spun-out by Intel (NASDAQ:INTC) in October as the Pat Gelsinger-led company continues to shore up its balance sheet and focus on its core initiatives.
Feinseth added that Mobileye's (MBLY) "significant" investments in research and development, as well as its first-mover advantage, product portfolio and relationships with auto makers should put it well-positioned to capture a market that the analyst believes could be worth as much as $480B by the end of the decade.
Last month, Wall Street research firms started coverage on Mobileye (MBLY), with analysts overwhelmingly positive on the Intel spin-off.