Apparently, analysts on Wall Street are bullish on self-driving technology — or at least, Mobileye Global’s (NASDAQ:MBLY) version of it. The experts are generally enthusiastic about Mobileye, and two analysts just initiated coverage on the shares with high ratings. Nevertheless, today’s traders seem ambivalent and MBLY stock was volatile this morning.
Mobileye Global is basically a spinoff of Intel (NASDAQ:INTC), which owns the self-driving tech company but sold part of it to investors not long ago. Mobileye specializes in driver assistance features, including vision systems.
The bulls got a double-shot of positive news concerning Mobileye recently. For one thing, Raymond James analyst Brian Gesuale initiated coverage of MBLY stock with a “strong buy” rating. Gesuale also assigned a highly ambitious price target of $50 on the shares.
Meanwhile, Mizuho analyst Vijay Rakesh commenced coverage of Mobileye Global with a “buy” rating and a price target of $35. That’s not quite as optimistic as Gesuale’s target, but is still suggests significant upside potential.
What’s Happening with MBLY Stock?
The market’s initial response to these lofty ratings and price targets was to buy MBLY stock. However, it didn’t take long for the sellers to take control of the price action.
Mobileye shares were in the red by 10:00 a.m. Eastern, which might seem irrational considering Wall Street’s positive take on the company. After all, nine out of 11 analysts are bullish on the stock now, and the other two are neutral.
Perhaps MBLY stock is just collateral damage today. The Nasdaq lagged the Dow Jones Industrial Average and S&P 500 indices this morning, indicating today’s traders are jittery about tech stock in general.
Still, this doesn’t mean Mobileye isn’t worth investing in for the long term. As Gesuale envisions “deeper penetration” of the $40 billion total addressable market for self-driving technology, Mobileye could end up in the driver’s seat of a highly lucrative business.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.