Mobileye Analyst No Longer Bearish On Lowered Expectations, Outperformance Drivers

While Mobileye Global Inc's (NASDAQ:MBLY) stock valuation reflects lowered expectations, the company has some key growth drivers, according to JPMorgan.

The Mobileye Global Analyst: Analyst Samik Chatterjee upgraded the rating from Underweight to Neutral. He raised the price target from $12 to $13.

The Mobileye Global Thesis: The stock has "limited downside risks" at current valuation levels, Chatterjee said in the upgrade note.

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The analyst mentioned four key drivers:

• Stabilization of the auto outlook after the tariff-related uncertainty in 2025
• Lowered growth expectations are baked into the share price, which has lost 72% in two years
• Growth outlook for mobility-as-a-service has improved over the last year; Mobileye is well-positioned to benefit through its partnerships with Lyft Inc (NASDAQ:LYFT) and Uber Technologies Inc (NYSE:UBER)
• Building pipeline of Surround ADAS

"While the growth outlook for SuperVision has moderated in the last year, the moderation in revenue opportunity anticipated for SuperVision is now being modestly offset by the building pipeline of Surround ADAS, which has a much lower content per vehicle opportunity but an easier path to standardization as well as adoption across a wider range of mass market vehicles with higher volume implications," he wrote.

MBLY Price Action: Shares of Mobileye Global had risen by 3.52% to $11.92 at the time of publication on Tuesday.

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