IB Net Payout Yields Model

Mobileye Global: Still Priced For Perfection

  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 

Update - June 5, 2023

Intel dumping shares should cap the stock in MobilEye following the irrational double top at $46.

-Mobileye Global (NASDAQ:MBLY) on Monday announced the commencement of a secondary stock offering of up to 35M of its class A shares by a unit of Intel (INTC).

-The Intel (INTC) unit selling the shares in the offering is Intel Overseas Funding Corporation.

Finviz Chart

Update May 25, 2023 

The Wells Fargo analyst sounds really bullish, but the price target only offers 25% upside. The better bet is Luminar Tech. (LAZR) at these prices.

-Mobileye (NASDAQ:MBLY) shares rose more than 4% in pre-market trading on Thursday as Wells Fargo started coverage on the autonomous driving semiconductor company with an overweight rating.

-Analyst Aaron Rakers, who also put a per-share price target of $50 on Mobileye (MBLY), noted that the company is in the early stage of a "platform appreciation," helping automotive company get to the goal of fully autonomous vehicles over the next five to ten years.

-"We're positive on MBLY's strategy that SuperVision adoption / expansion will serve as the foundation for its consumer AV strategy," Rakers wrote in an investor note. Rakers sees Mobileye (MBLY) generating SuperVision revenue over the next five years to $3.2B and possibly as high as $7B.

 Finviz Chart

Original article posted on Apr. 28

  • Mobileye Global Inc. has to cut 2023 revenue targets due to a Chinese customer struggling to meet sales targets.
  • The ADAS company has a massive backlog, but revenues are only forecast to grow around 10% this year.
  • Even with the dip, Mobileye Global Inc. stock still trades at 14x lowered '23 sales targets.
As highlighted when Mobileye Global Inc. (NASDAQ:MBLY) completed the IPO process late last year, MBLY stock then was more than priced for perfection. Such stocks face major downside risk when the business doesn't hit financial

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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