Mobileye: Wall Street Is Hot And Bothered Over This

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It seems like the tug of war regarding Mobileye NV
MBLY
, going on between analysts last week (http://www.benzinga.com/trading-ideas/technicals/15/02/5283923/analyst-differ-on-the-direction-of-mobileye), has come to an end. Shares are trading up more than 5 percent on Thursday session as several Wall Street research firms issued positive ratings on the stock. Citi issued a Buy rating on Wednesday, accompanied by a $62 price target, which implies a huge upside potential from current price points. According to the firm's report, they see the company's first design win for the new EyeQ4 chip with a premium European OEM with kind eyes. "Recall that on the Q4 earnings call, management alluded to being in the final phase of a ‘major camera sourcing' running on trifocal. The trifocal camera, running on the EyeQ4 chip, provides an ASP opportunity that's up to 3x that of Mobileye's current mono ASP. Our view that Mobileye's hyper-growth can continue beyond 2017 is partially predicated on the ramp of tri-focal in 2018 and beyond." According to the analysts, Wednesday's major award supports this view. For its part, Barclays reiterated an Overweight rating on the stock on Thursday, setting its price target at $66. The firm assures that, despite increasing competition, Mobileye's "position, market share and margins are secure." In the report, Barclays analysts dispel five myths related to the company and the wider industry. Long story short, Mobilieye is likely to be the first to reach 99% accuracy, while competitors will probably not be able to keep up with its pace, software capabilities, or deep set of training data. Finally, RBC Capital Markets maintained an Outperform and a $55 price target on the stock. According to a report issued Thursday, the firm appreciates "the technical factors that have impacted the shares and the sensitivity to competitive ADAS headlines." However, they have seen nothing that changes their positive view. "Sentiment may have bottomed. We see significant upside and a favorable risk/reward profile so would aggressively add at current levels."
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Posted In: Analyst ColorNewsPrice TargetReiterationAnalyst RatingsBarclaysCitiEyeQ4mRBC Capital Markets
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