Barclays’ Brian A. Johnson expects Mobileye NV MBLY's 2Q earnings call to “shed light on a number of catalysts, which could drive further momentum for the stock.”
Johnson maintains an Overweight rating on the company, while raising the price target from $50 to $60.
What To Expect On The Call
Reaffirming Mobileye as Barclays’ Top Pick, the analyst mentioned that the 2Q results were expected to continue the trend from 1Q, with growth in chip unit shipments and ASPs, along with strength in gross margin.
“While still in its early stages, we expect MBLY to provide more color on its agreement to team up with Intel Corporation INTC and BMW for highly (Level 3 and 4) and fully autonomous (Level 5) vehicles by 2021,” Johnson stated.
Johnson also expects Mobileye to provide further details on the differences between its own role and that of Intel in the venture, along with details of the level of technology redundancy within the vehicle.
Partnerships: A Positive
The analyst believes the partnership is a meaningful positive for Mobileye, since it increases confidence in the long-term expectations for semi/fully autonomous ASP of $130. It also highlights that chip partners would be complementary to rather than competitors of the company.
“MBLY may announce further progress in REM, with perhaps a firmer agreement with one of the initial OEMs that might result in mid-term monetization,” Johnson added.
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