Mobileye pops as Wells Fargo starts coverage with overweight rating
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Mobileye (NASDAQ:MBLY) shares rose more than 4% in pre-market trading on Thursday as Wells Fargo started coverage on the autonomous driving semiconductor company with an overweight rating.
Analyst Aaron Rakers, who also put a per-share price target of $50 on Mobileye (MBLY), noted that the company is in the early stage of a "platform appreciation," helping automotive company get to the goal of fully autonomous vehicles over the next five to ten years.
Rakers added that the expansion of its SuperVision platform is "key."
"We're positive on MBLY's strategy that SuperVision adoption / expansion will serve as the foundation for its consumer AV strategy," Rakers wrote in an investor note. Rakers sees Mobileye (MBLY) generating SuperVision revenue over the next five years to $3.2B and possibly as high as $7B.
The analyst said he expects continued SuperVision pipeline expansion, but a win at a "major" manufacturer would be the "most notable."
Last month, Mobileye (MBLY) cut its guidance for the full-year, citing weakness in the Chinese electric vehicle market caused by price cuts from Tesla (TSLA) and general economic weakness.
Mobileye (MBLY) now expects revenue for 2023 to be between $2.06B and $2.11B, below the $2.25B analysts were expecting. The company previously guided 2023 revenue to be between $2.19B and $2.28B.
Mobileye (MBLY) was spun-off from Intel (INTC) in late 2022 but is still majority owned by the chip giant.
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