Mobileye's OEM Engagements Increase and Supervision Shipments are Key Factors for Growth, Analysts Say

Raymond James analyst Brian Gesuale reiterated a Strong Buy rating on Mobileye Global Inc MBLY with a price target of $50.

Mobileye reported a second-quarter FY23 revenue decline of 1% year-on-year to $454 million, beating the consensus of $451.7 million. Non-GAAP EPS of $0.17 beat the consensus of $0.12.

MBLY printed solid 2Q23 results bookended by an impressive EPS beat ($0.17 vs. $0.12 estimate), Adjusted EBIT margin of 30.8% (vs. 23.9% estimate), and revenue 1% ahead of the Street ($454 million vs $451 million). Notably, the company maintained its guidance.

Also, his checks confirmed improving 2023 SV shipment visibility and a noticeable increase in confidence around customer engagements. 

He was also encouraged by penetration with some of the company’s largest OEM customers (i.e., Volkswagen AG VWAGY). 

The growing CPV (content per vehicle) story is on track, and the critical factors for the stock will be Supervision shipments and new design wins with OEMs.

TD Cowen analyst Joshua Buchalter maintained Mobileye with an Outperform and lowered the price target from $48 to $45.

Canaccord Genuity analyst George Gianarikas maintained Mobileye with a Buy and raised the price target from $50 to $55.

Price Action: MBLY shares traded higher by 0.15% at $38.07 on the last check Friday.