By Carly Forster
Mobileye NV (NYSE:MBLY) is a Jerusalem, Israel based technological company who develops and manufactures vision-based Advanced Driver Assistance Systems that helps drivers avoid auto accidents using its own ‘EyeQ’ technology. The company uses software algorithms to visually identify hazards including other vehicles, pedestrians, animals, and debris. On Tuesday, August 26th, shares of Mobileye jumped over 8% after a handful of Wall Street analysts gave positive forecasts for the company and the stock.
What has analysts buzzing is Mobileye’s potential involvement in developing self-driving cars. The company already has partnerships with multiple automakers such as General Motors, Volvo, and BMW, whose latest vehicles already have built-in Mobileye systems. It is being rumored that Mobileye is also in talks to team up with Tesla. The company became public on August 4th of this year and since then, Mobileye stock has gone up 60% from its IPO price.
Shares of Mobileye NV (NYSE:MBLY) opened at $39.70 on Tuesday, August 26th. The technology company has a 1-year high of $41.98 and a 1-year low of $31.11. The stock’s daily moving average is $40.37 and has a 50-day moving average of $35.24. The market cap for Mobileye is $1.33 billion and its P/E ratio is not applicable.
On August 26th, Raymond James analyst Tavis McCourt initiated an Outperform rating for Mobileye with a $40 price target. He noted, “Mobileye’s multi-year growth trajectory is based on the company’s EyeQ technology as being more cost-effective than other sensors like lasers. One driver will be car makers competing against each other to get higher safety ratings for their models.” McCourt has a +15.0% average return on all stocks he has rated and a 68% success rate in making recommendations.
Also on August 26th, Deutsche Bank analyst Rod Lache initiated a Buy rating for Mobileye with a $45 price target. He reasoned, “Mobileye has proven their technology through a series of very high profile, industry disruptive contract wins, including camera based emergency braking/pedestrian detection systems that have been incorporated into Volvo AB (ADR) (OTCMKTS:VOLVY) (STO:VOLV-B), Bayerische Motoren Werke AG (ETR:BMW), General Motors Company (NYSE:GM), and Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) (TYO:7201) vehicles starting in 2010.” Lache has a +19.1% average return on all stocks he has rated and a 70% success rate in making recommendations.
On average, the top analysts’ consensus for Mobileye is MODERATE BUY.
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Carly Forster writes about stock market news. She can be reached at [email protected]