Market Overview

Delphi And Mobileye Create 'Win-Win' Partnership

Share:
Delphi And Mobileye Create 'Win-Win' Partnership
Related MBLY
Benzinga's Top Upgrades, Downgrades For January 13, 2017
The Market In 5 Minutes: Big Banks Get Earnings Season Started
Mobileye Laps Competition In Driverless Car Field, Gets Buy Rating (Investor's Business Daily)
Related DLPH
KeyBanc Names CES Auto Winners
January Will Feature Some Of The Market's Most Influential Events

A day after Mobileye NV (NYSE: MBLY) and Delphi Automotive PLC (NYSE: DLPH) announced their alliance to develop the SAE Level 4/5 automated driving solution, CLSA analysts Emmanuel Rosner and Andrew Fung termed it a "win-win" partnership.

The brokerage maintains a Buy rating on Mobileye shares with a price tag of $58. The lead analyst believes the alliance provided increased confidence in the company's capacity to retain a big market share in an autonomous world. Delphi's position in the alliance and its capacity to make use of the preferred partner looks more interesting.

In a research note to clients, CLSA said, "The solution will combine Mobileye's camera algorithms and REM dynamic mapping technology with Delphi's systems integration expertise and experience with other sensors like radar and LiDAR, and is expected to cost automakers around $5,000 once scaled up. The two companies expect to jointly invest $300 million–$400 million over the next few years and target a production ready date of 2019 with potential launches as early as late-2019."

Related Link: Shocker: Consumers Don't Care About Auto Tech, Survey Finds

Referring to Mobileye's economics, the lead analysts think that the system cost to be lower by $5,000 compared to any alternative solutions. The brokerage attributed it to the company's REM map-based camera sensors since LiDAR-based approach is more expensive.

The brokerage is also not worried about some auto firms like Ford Motor Company (NYSE: F) and Tesla Motors Inc (NASDAQ: TSLA) preferring an in-house development of autonomous driving capabilities. CLSA pointed out the management's confidence in attracting several other automakers since it provided capital-efficient autonomous technology.

At time of writing, Mobileye was trading at $48.20, down 2.94 percent on the day. Delphi was up 1.06 percent at $68.59.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for MBLY

DateFirmActionFromTo
Jan 2017JefferiesInitiates Coverage OnBuy
Jan 2017Monness Crespi HardtInitiates Coverage OnBuy
Dec 2016SusquehannaInitiates Coverage OnNeutral

View More Analyst Ratings for MBLY
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Price Target Reiteration Travel M&A Analyst Ratings Tech Best of Benzinga

 

Related Articles (F + DLPH)

View Comments and Join the Discussion!