How To Ride The Growing Autonomous Vehicles Market: Analyst Covers Mobileye, Aurora

Zinger Key Points
  • Mobileye has a ~70% share in the global ADAS space and could lead the full self-driving market.
  • Aurora has the opportunity to dominate the US autonomous trucking market.

Tesla Inc TSLA and Apple Inc AAPL are the bigwigs driving innovation in autonomous vehicles (AVs).

However, there are plenty of other interesting names that offer investors attractive entry points.

The Autonomous Vehicles Analyst: Canaccord Genuity's George Gianarikas initiated coverage of Mobileye Global Inc MBLY and Aurora Innovation Inc AUR with Buy ratings and price targets of $50 and $5, respectively.

Check out other analyst stock ratings.

The Autonomous Vehicles Thesis: While autonomous driving promises to “improve fuel efficiency, lower transport costs of goods, and alleviate supply chain bottlenecks,” it can also increase human productivity, decongest highways, downsize vehicle fleets, and even and save lives, Gianarikas said in the initiation note.

He added, however, that AI systems are underpinned by complex algorithms that are “developed and trained through the accumulation of vast amounts of road data.”

Mobileye has a whopping share of around 70% in the global advanced driver assistance systems (ADAS) market and could “help lead the full self-driving market,” the analyst wrote. The premium at which Mobileye’s stock trades is “warranted,” given the company’s “superior growth metrics and long-term category potential."

“Led by three AV pioneers, Aurora has strong, visionary management that has an opportunity to dominate the US autonomous trucking market,” which represents a “significant enough opportunity to make Aurora’s stock compelling,” Gianarikas said.

“The company also needs capital, but we assume that as its solution hits the streets and investors can fully assess its strong prospects, funding opportunities will emerge,” he further stated.

MBLY, AUR Price Action: Shares of Mobileye Global had risen by 2.79% to $43.50, while Aurora Innovation’s had added 18.34% to reach $1.80 at the time of publishing Wednesday.

Image by Julien Tromeur from Pixabay

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