Mobileye (MBLY) stock has been in a sharp downtrend this year, but a senior Citi analyst believes its story moving forward will be a different one. Analyst Michael Ward assumed coverage of MBLY this morning with a “Buy” rating and an $11 price target, which signals potential upside of nearly 60% from current levels.
His bullish call brings much-needed positivity to Mobileye shares, currently trading at a price that trails their year-to-date high by more than 50%.
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www.barchart.comWhy Is Citi Bullish on Mobileye Stock?
Ward expects MBLY stock to benefit as automakers remain committed to making driving safer. He believes the company’s technology will play an increasingly important role in that process over the next decade, giving it a potentially durable source of demand.
Mobileye’s technology has already reached more than 230 million vehicles across some 1,400 models. That base of installations gives the bullish thesis substance beyond the promise of fully autonomous cars.
Citi also expects more sophisticated systems carrying greater technology content to launch with global automakers within the next two years.
Ward favors investing in Mobileye as it could benefit from supplying increasingly capable systems, alongside broader adoption of driver assistance technology.
MBLY Shares Are Attractively Priced
Valuation makes up the second pillar of Citi’s bullish argument for Mobileye shares. As of this writing, the company is trading at a price-to-sales (P/S) multiple of about 3x, which Ward called a discount relative to its financial performance and market opportunity.
In fiscal Q2, MBLY earned $0.19 on a per-share basis, handily beating the consensus estimate set at $0.06 a share.
More importantly, insiders have loaded up on company shares in the trailing three months, reinforcing that management also believes they are rather undervalued at the current price.
How Wall Street Recommends Playing Mobileye
Other Wall Street analysts also agree with Ward’s constructive view on Mobileye heading into 2027.
According to Barchart, the consensus rating on MBLY shares sits at “Moderate Buy” currently, with the mean price target of $11.12 indicating potential for about a 60% rally from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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