CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $5 to $45, based on a ’25 P/E of 37.5x. We raise our ’23 adjusted EPS estimate by $0.05 to $0.80, lower ’24 by $0.10 to $0.85, and start ’25 at $1.20. MBLY posts Q3 adjusted EPS of $0.22 vs. $0.15 (+47%), well ahead of the $0.17 consensus. Revenue rose 18% to $530M ($2M ahead of consensus) and adjusted gross margin contracted 470 bps to 69% (slightly below consensus). MBLY raised full year adjusted operating margin guidance to $648M-$665M from $600M-$631M due to lower-than-expected operating expenses in both Q3 and Q4. Shares of the Israel-based company have sold off sharply, down 18% since the heightened conflicts started on October 7. We think the substantial beat and guidance raise should reassure investors who are clearly worried about risks related to the war. MBLY maintains a strong balance sheet with $1.19B of cash and no debt, and continues to screen as one of the strongest growth stories in the auto parts and equipment sub-industry. We reiterate our Buy on the shares.