Is The Selloff In Mobileye Overdone?
Mobileye NV (NYSE: MBLY)'s stock plunged more than 13 percent Tuesday morning after the company said its partnership with Tesla Motors Inc (NASDAQ: TSLA) will not be extended. The Israel-based developer of advanced driver assistance systems and autonomous driving technologies, supplied Tesla with a processor for use in its cars called the EyeQ3.
Mobileye's stock was hard hit following the conference call. The company reported its Q2 earnings in which it earned $0.17 per share on revenue of $83.5 million - exceeding Wall Street's expectations of $0.15 per share on revenue of $77.3 million.
John Rosevear, a senior analyst with The Motley Fool, Tweeted that Tesla represents just 1 percent of Mobileye's total sales. He added that Mobileye's CEO, Ziv Aviram, couldn't confirm the figure, but it's close.
Mobileye's Deep Portfolio Of Clients And Partners
Analysts at CLSA speculated that the agreement would mark the automotive industry's "first-ever production commitment towards driverless shared mobility." The analyst maintained a Buy rating on Mobileye's stock with a $58 price target.
Here are some of the more notable headlines which support the thesis that Mobileye's portfolio extends beyond Tesla:
- Volkswagen names Mobileye a critical supplier for its 'Future Automotive Supply Tracks (FAST)' initiative.
- Nissan Motor's new ProPILOT semi-autonomous highway driving feature for its Serena minivan uses Mobileye's technology.
- Analysts at Piper Jaffray say Mobileye is their favorite "car-of-the-future" stock pick.
- Analysts at Citi stated that Mobileye has the potential "gradually position itself as the core operating system for autonomous vehicles."
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