Trade of the Day: Upgrades Driving MBLY Stock Higher

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Mobileye NV (MBLY) — Shares of this maker of image sensing and processing technology for cars surged on Monday on the back of an upgrade from Morgan Stanley. The brokerage firm reiterated its “overweight” rating and raised its price target from $68 to $80. At the same time, Morgan Stanley analysts came out with a massive upgrade on electric vehicle manufacturer Tesla Motors Inc (TSLA), raising its price target to $465, saying the company will be a leader in the self-driving technology.

MBLY stock is a pure play on the self-driving technology for active investors and traders looking to capitalize on positive news flow.

Mobileye has only been a publicly traded company for about 12 months, but the stock has already exhibited plenty of gyrations. The typical post-IPO honeymoon took MBLY stock from the low $30s in August 2014 up to the high $50s in just two months before reality set in and the stock came crashing back down, retesting its IPO levels this past March.

The comeback since then has been equally impressive and was in good part the result of more positive news flow around self-driving car technology as more investors became believers.

By mid to late July, MBLY stock marginally surpassed its October 2014 highs and settled into a multiweek consolidation phase above the 2014 highs.

With Monday’s rally, MBLY stock broke higher and out of this consolidation phase on good volume. While potentially somewhat overbought in the immediate term, the next upside target is in the high $60s.

MBLY Stock Chart
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Article printed from InvestorPlace Media, https://investorplace.com/2015/08/mobileye-nv-mbly-stock-trade-of-the-day/.

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