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JPMorgan initiated Mobileye (NASDAQ:MBLY) at Overweight with a $50 per share price target in a note to clients on Tuesday.
The JPMorgan analysts told investors the company is “driving ahead” with robust fundamentals and leadership in the high-growth ADAS/AV markets.
“We are initiating on shares of Mobileye with an Overweight rating and Dec 2023 price target of $50, with the company well positioned to deliver a secure revenue and earnings ramp on account of a ramp in ADAS revenue, driven by both higher ADAS adoption as well as higher content per vehicle, and a high likelihood (but as yet less demonstrated) capability in relation to Autonomous driving (under different scopes) ramping closer to the end of the decade,” they explained.
The analysts went further, stating Mobileye is “positioned to be the largest stand-alone autonomous driving company.”
“We expect Mobileye to replicate its success in ADAS in Autonomous Driving to position itself for strong robust growth. Broader ADAS adoption had already delivered revenue growth of 34% between 2015 and 2021. Increasing CPV led by adoption of Enhanced ADAS, in combination with Supervision, Chauffeur, and MAAS platforms, will enable scaling ADAS to AVs, driving 38% revenue CAGR between 2022 and 2030, implying revenue of $23 bn exiting the decade,” they added.
