Deutsche Bank Boosts Target On Mobileye From $55 To $72 After Israel Visit

In a report published Tuesday, Deutsche Bank analyst Rod Lache maintained a Buy rating on Mobileye NV MBLY, while raising the price target from $55 to $72.

According to the Deutsche Bank report, "In the year since Mobileye's IPO, the company has since emerged as a clear leader in the burgeoning market for Active Safety systems with a 100 percent win rate on highly contested FCAM contracts, and an early lead in the development of artificial intelligence for autonomous driving."

Following a visit to the company's Jerusalem headquarters, the analyst expressed confidence in Mobileye being able to achieve higher penetration of FCAM than earlier estimated. Also, the management does not expect to see the company's market share decline to 50 percent over the next five years.

"And in at least two instances that we know of, significant sized OEMs plan to deploy MBLY's technology across all of their models as opposed to just a single platform," Lache stated.

The analyst also believes that the company's ASPs would benefit from the upsell of features to OEMs, along with the low volume of initial deployments of semi-autonomous driving.

"Interestingly, MBLY believes that they will have fairly dramatic increases in functionality (fully autonomous) by 2020. ASP's for this level of functionality will likely be in the $200-$300 range," Lache added.