The shares of Mobileye NV (NYSE:MBLY), a designer and developer of software and related technologies for camera-based advanced driver assistance systems (ADAS) are surging prior to the release of its second-quarter financial results tomorrow, September 4 around 7:00 A.M. EDT.

Mobileye

Mobileye NV (NYSE:MBLY) is trading at $48.30 per share, up by more than 12% at the time of this writing around 1:27 in the afternoon in New York Today.

Mobileye IPO

Last month, Mobileye NV (NYSE:MBLY) closed its initial public offering (IPO) at $25 per share and generated $1.023 billion gross proceeds. The company offered 8,325,000 shares, and the selling shareholders offered 32,602,350 shares during its debut.

According to the company, it intends to use approximately $193.7 million of net proceeds from its public offering to purchase EyeQ chip inventory and for general purposes.

Since its IPO, the stock price of Mobileye NV (NYSE:MBLY) continued to increase. Its highest trading price was $49.44 per share. The stock gained more than 17% over the past month.

Morgan Stanley bullish on Mobileye

Analysts at Morgan Stanley initiated coverage on the shares of Mobileye NV (NYSE:MBLY) with a positive recommendation today. In a note to investors, Analyst Ravi Shanker indicated that the stock could be worth $100 per share in a bull-case scenario.

According to the analyst, the company will be able to reach the $100 price it will be able to maintain its existing 80% market share. In addition, Shanker said expanding Mobileye’s market penetration in China would help reach the $100 stock price.

Shanker said, “These are not heroic assumptions – all a $100 price needs is for MBLY to hold its current position on the above factors. In the absence of credible new competition, we believe this is possible.”

Other analysts’ recommendations

Analysts at Goldman Sachs also initiated coverage on the shares of Mobileye NV (NYSE:MBLY) with a Neutral rating and $45 price target.

On the other hand, Deutsche Bank analysts recommended a Buy rating and $45 price target on the stock while Wells Fargo analysts rated the stock Outperform.

The consensus stock rating for Mobileye NV (NYSE:MBLY) from eleven investment research firms is Buy, and the twelve-month average price target is $45.44 per share.