Canaccord Genuity initiated coverage of Mobileye Global Inc. (NASDAQ:MBLY) with a Buy rating and set their 12-month price target for the stock at $50.00 as analysts see vehicle autonomy as “one of the highest value-creating technologies to be deployed. Ever.”
The analysts wrote in a note, “Full autonomy not only has the potential to improve resource utilization (the key underlying tenet of sustainability) but to also enhance human productivity, decongest highways, downsize vehicle fleets, provide transport to billions of underserved, and save lives. And that’s not all. Deployed in class 8 trucks (which we think will be the first vehicle modality to support full autonomy at scale), autonomous driving can improve fuel efficiency, lower transport costs of goods, and alleviate supply chain bottlenecks. Ten years from now, our roads should look a lot different. And better.”
Canaccord Genuity arrived at their $50.00 price target by applying a ~25x multiple to their 2026 non-GAAP EPS estimate of $2.03. The analysts believe that Canaccord's higher valuation for Mobileye is justified due to the company's impressive growth indicators and long-term potential within its category. Additionally, Mobileye's dominant position in the ADAS market (with an estimated global market share of around 70%) and its advantageous position in the emerging full self-driving market further strengthen its prospects.
Shares of MBLY are up 2.06% in pre-market trading on Wednesday.