Mobileye

By Emily Dattilo Mobileye Global’s autonomous driving technology is unmatched, and investors are missing out, Wolfe Research said in a note upgrading the stock Friday. Analysts led by Shreyas Patil upgraded shares of the autonomous-driving systems company to Outperform from Peer Perform and established a target for the price of $41 in a research report Friday. The stock has fallen 28% so far this year to trade around $31. To put it simply, the analysts don’t see any self-driving competition that comes close to what Mobileye is bringing to the market, across a number of metrics. “At this point we do not see a clear rival that can match Mobileye’s capabilities in cost, performance, or scalability,” they wrote. That will become more apparent over the next six to 12 months as more car equipment manufacturers sign up to use the system, the analysts added. Mobileye’s “hands-free/eyes-on” SuperVision system is similar […]

The outlook is getting uglier for chip makers that serve the auto industry. Shares of Mobileye Global, a supplier of autonomous-driving systems and related equipment, fell by more than 25% on Thursday after company said it expects first-quarter revenue to decline by 50% versus the prior year, while Wall Street had expected an increase. The company blamed a buildup of inventories of its EyeQ computer chips at some customers. Mobileye’s forecast echoes downbeat news from ON Semiconductor and Lattice Semiconductor, which provided soft outlooks in late October. Both companies cited deteriorating demand in the auto and industrial markets. Wall Street analysts have been growing increasingly concerned about semiconductor companies with exposure to the auto industry. Earlier Thursday, before the news from Mobileye, Bernstein analyst Stacy Rasgon lowered his rating for Analog Devices stock to Market-Perform from Outperform. He reaffirmed his target of $200 for the price target for the shares,

By Adam Clark Mobileye Global shares were diving on Thursday after the autonomous-driving systems company said it expects a 50% fall in revenue in the first quarter of the year. The disappointment is also a blow to its former parent and majority shareholder Intel. Mobileye said that it expects its revenue for the first quarter of 2024 to be “significantly below” the same period a year earlier. It blamed the forecast on excess inventory of its EyeQ computer chips being held by some of its customers. The company expects first-quarter revenue to be down approximately 50%, from the $458 million revenue it generated in the first quarter of 2023. Analysts were forecasting first-quarter revenue to rise to $557.1 million, according to a FactSet consensus. The company expects a first-quarter adjusted operating loss of $65 million to $80 million. Mobileye shares were down 26% at $29.45 in premarket trading on Thursday.

Intel’s stock drops as well as chip giant holds majority economic interest in Mobileye Shares of Mobileye Global Inc. were tanking in Thursday’s premarket action after the company, which makes self-driving technology, issued a revenue warning as its customers deal with excess inventory. Mobileye (MBLY) said it expects first-quarter revenue to fall about 50% from the $458 million that it reported in the year-earlier period. Analysts tracked by FactSet had expected revenue to rise to $557 million for the period. The company disclosed in a press release that it has “become aware of excess inventory at our customers,” representing an estimated 6 million to 7 million units of the company’s EyeQ product. “As supply chain concerns have eased, we expect that our customers will use the vast majority of this excess inventory in the first quarter of the year,” Mobileye said. Shares were down more than 25% in premarket activity.

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