Stock Price & Analysis

Sell MBLY as it faces mixed earnings and analyst skepticism despite positive hedge fund investment. Hold until clearer growth signals emerge.

MBLY stock is expected to reach $19 per share in 2025, driven by positive sentiment from Point72's 5% stake and potential OEM contract wins. However, the stock may face resistance near $16.70-$17.57, with downside risks tied to declining sales and competition in the AV market. Current price trends and analyst sentiment suggest a moderate upside potential.

The S1 support level for MBLY Stock is $13.81 ,The R1 resistant level for MBLY Stock is $15.96.

As of the end of day on 2025-03-14, the price of MBLY Stock was $14.97.

The target price for MBLY Stock according to analyst rating is 20.13, with the highest price target at 30.00 and the lowest at 11.00. Analysts have a Moderate Buy rating on MBLY Stock overall.

The market cap of MBLY is $11.7B.

Analysis and Insights

Valuation Metrics:

Mobileye Global Inc. (MBLY) currently trades at a price of $14.85 as of 2025-03-10. Key valuation metrics include:

• PE Ratio: 2024/Q1: 80.19, 2024/Q2: 86.47, 2024/Q3: 76.87
• EV/EBITDA: 2024/Q1: 13.95, 2024/Q2: 12.29, 2024/Q3: 6.45
• PS Ratio: 2024/Q1: 1.76, 2024/Q2: 1.54, 2024/Q3: 0.97
• PB Ratio: 2024/Q1: 1.76, 2024/Q2: 1.54, 2024/Q3: 0.97

These metrics suggest that Mobileye is trading at a premium compared to its peers, with a higher PS ratio indicating potential overvaluation relative to its revenue generation capabilities.

Financial Performance:

• Revenue and Earnings: Mobileye's revenue and earnings have declined year-over-year, with Q3 2024 showing a significant drop in earnings. Despite this, the company has maintained consistent operating cash flow of $400 million, indicating stable cash generation capabilities.
• Operating Margins: The company has shown improvement in operating margins, up 5% quarter-over-quarter, reflecting cost control measures.

Market Sentiment and Analyst Ratings:

• Analyst Consensus: Mobileye has a Moderate Buy consensus rating, with an average price target of $20.13, implying a 35.8% upside potential. However, recent downgrades from analysts like JP Morgan and Mizuho reflect concerns about slowing growth and customer volumes.
• Institutional Interest: Point72's 5% stake in Mobileye has boosted investor confidence, but the stock's 47.8% decline over the past year indicates ongoing challenges.

Recent News and Events:

• Point72 Investment: The hedge fund's stake has positively impacted sentiment, but the stock's reaction has been muted, rising only 2% after the announcement.
• Customer Volumes: Declining customer volumes and delays in advanced product adoption, particularly with key customers like Zeekr, pose significant risks to future growth.

Conclusion:

While Mobileye has shown progress in operational efficiency and maintains a strong position in the ADAS market, its high valuation metrics, declining sales, and mixed analyst sentiment suggest the stock may be overvalued at current levels. The 35.8% upside potential indicated by analyst price targets is offset by significant execution risks and customer volume challenges.

Mobileye Global Inc is an Israel-based company that is primarily actives in field of development and deployment of advanced driver-assistance systems (ADAS) and self-driving system (AV). Company's portfolio Mobileye’s of solutions is built upon a purpose-built software and hardware technologies designed to provide the capabilities to make advanced driver-assistance systems and autonomous driving a reality. These technologies are dedicated to deliver capabilities of advancing the safety of road users, and improving the driving experience and the movement of people and goods globally. The Company's offerings include Driver Assist, Cloud-Enhanced Driver Assist, Mobileye SuperVision Lite, Mobileye Chauffeur, and Mobileye Drive. Mobileye Global Inc operates globally.

MBLY stock is predicted to reach $40 by 2030, driven by its strong position in the autonomous driving market and expected revenue growth from new OEM contracts. The company's advanced ADAS and AV technologies, along with strategic partnerships, position it for long-term success. Analysts expect significant upside due to increasing adoption of autonomous systems.

MBLY has a total of 3700 employees.