JPMorgan Reiterates Underweight Rating on Mobileye N.V (MBLY)

JPMorgan analyst Samik Chatterjee reiterated an Underweight rating and $10.00 price target on Mobileye N.V (NASDAQ: MBLY)

The analyst comments "Investor interest has improved this year in the automotive industry and associated suppliers, particularly in relation to suppliers supporting autonomous driving functionalities, with recent sales and production trends across geographies starting to show signs of stabilization. However, with signs of stabilization coming from the confluence of better production in China but modestly challenged production in Europe and North America, investor focus is shifting to focus on Mobileye’s 2025 outlook as well as any announcements relative to new wins driving outlook for 2026 and beyond. As suggested by the share price volatility over the last couple of months, investor expectations are looking for a stabilization in the outlook for 2025 to a healthy but reasonable growth, but are more focused on new wins, which were expected at the investor day in early December and subsequently at CES, to support their expectations of a materially higher growth in 2026 and beyond, which is required to justify the premium multiple that MBLY shares trade on. In the absence of recent new wins as well as a more competitive backdrop for autonomous and semi-autonomous products (i.e., Surround ADAS, SuperVision, Chauffeur), we are moderating our earnings growth cadence for the out years, with our out year EPS estimates through 2030 now tracking ~20% below consensus estimates on average. However, for 2025 where expectations are admittedly lower already, we are expecting 1Q guide to track in line with consensus expectations and are updating our full-year revenue expectations (based on latest auto production estimates) to slightly below consensus, driving our view that new customer announcements are likely to be a bigger driver of share price outcomes from the print rather than the guide itself. We reiterate our Underweight rating on account of limited proof points yet of commercial ramp of semi-autonomous and autonomous products in series production with Western OEMs, which in our view limits reasons to attribute a premium valuation multiple to MBLY shares, which are trading at 28x 2026 EPS."

For an analyst ratings summary and ratings history on Mobileye N.V click here. For more ratings news on Mobileye N.V click here.

Shares of Mobileye N.V closed at $16.17 yesterday.

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