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MBLY Stock Alert: Why This Analyst Says Mobileye Is a ‘Buy’

  • New Street Research initiated coverage on Mobileye Global (MBLY) with an optimistic rating and price target.
  • Analyst Pierre Ferragu went on to talk about the potential of the autonomous driving (AD) market going forward.
  • MBLY stock is rallying moderately in early trading today.
Transdev Mobileye (MBLY) autonomous driving shuttle bus showcased at the IAA Mobility 2021 motor show in Munich, Germany
Source: VanderWolf Images / Shutterstock.com

All eyes are on Mobileye Global (NASDAQ:MBLY) stock today due to a fresh report from New Street Research. Specifically, the firm just started coverage of MBLY stock and apparently expects considerable price appreciation over the next 12 months. Moreover, New Street is bracing for a robust advanced driver assistance systems (ADAS) market.

Mobileye Global is an autonomous driving (AD) technology business owned by Intel (NASDAQ:INTC). However, the company was recently spun off so that it could be publicly traded.

Some folks were excited about the prospect of a pure-play, self-driving technology investment when Mobileye first hit the public market. Yet, MBLY stock was off to a rocky start after the spinoff.

Now, though, MBLY stock investors have received a shot in the arm from New Street Research analyst Pierre Ferragu, who initiated coverage with a “buy” rating and $42 price target on shares.

What’s Happening With MBLY Stock?

As you may recall, Mobileye priced its initial public offering (IPO) at $21 per share in late October. Today, MBLY stock is trading at around the $28 mark. It’s also up slightly compared to yesterday’s closing price.

Investors should consider the long-term outlook here — or at least, that’s what Ferragu seems to suggest. The analyst anticipates that the advanced driver assistance industry will expand to roughly $7 billion by 2025 and then $27 billion by 2030.

Not only that, but Ferragu envisions Mobileye’s sales reaching $3.9 billion by 2025. Clearly, he is bullish on the company and on AD tech in general.

If Ferragu’s price target turns out to be accurate, MBLY stock should zoom from $28 to $42 in just 12 months. That might sound very ambitious, but the self-driving technology industry may have significant room to grow over the next year as well as in the years to come.

In other words, Ferragu’s price objective may actually be achievable. Investors will have to be patient, however. Shares of MBLY aren’t shooting to the moon today, but they could shift into a higher gear soon enough.

On the date of publication, David Moadel did not hold (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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2022/12/mbly-stock-alert-why-this-analyst-says-mobileye-is-a-buy/.

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