Deutsche Bank says Israeli-based self-driving technology company Mobileye is becoming the “last man standing” in the race to develop self-driving cars. The investment bank says Mobileye's affordable, modular approach to advanced driver assistance systems (ADAS) compares favorably with competitors struggling with the complexity and high cost of developing truly self-driving “robotaxis.” He said that it is becoming more and more attractive. Deutsche Bank analyst Emanuel said: “In contrast to the large-scale troubles experienced by many of the industry's alternative solutions, reliable and affordable technology is already on the roads, and MBLY will rapidly I believe it is becoming one of the 'last survivors' of autonomous driving.” Rozner said in a note to clients dated December 20, 2023. Rozner expects the stock, which trades under the ticker MBLY, to rise 15% to $50 over the next 12 months. MBLY 1Y Line Mobileye provides automakers with cameras, chips and software that enhance their ADAS capabilities, such as automatic emergency braking. But the company is aiming even higher up the self-driving car stack with its new SuperVision product, which enables “hands-off” driving. Analysts at the investment bank said that regardless of Mobileye's electric vehicle plans, Mobileye is a “rare long-term prospect” as its technology could find buyers among global automakers looking to add self-driving features. “It's a growth story.” By contrast, Deutsche Bank said the recent suspension of GM subsidiary Cruise's robotaxi service in San Francisco is evidence of the “difficult commercialization reality” of fully autonomous vehicles aimed at public deployment. He said that. Mobileye itself is taking a stepping-stone approach, using its burgeoning supervision business as a bridge from 2025 to the eventual rollout of his fully autonomous “driver” system in 2026. Masu. The company claims it is in “serious” discussions about adopting SuperVision with 10 major automakers, including Ford, Audi, Geely and FAW, which account for nearly 35% of global car production. Polestar, the EV carmaker previously wholly owned by Volvo Cars, announced plans in August to use Mobileye's Chauffeur platform for its latest cars. If secured, these additional customer acquisitions could act as a “significant potential positive catalyst” for Mobileye's stock price and demonstrate the company's long-term growth prospects, analysts said. . RBC Capital Markets is also bullish on Mobileye. RBC analyst Tom Narayan said he has “high confidence” in his own prediction that 1.7 million SuperVision units will be shipped in 2027. Narayan believes the partnership with Volvo could account for more than half of this amount. Although RBC lowered its near-term earnings forecast, it raised its price target to $54, giving the stock 25% upside potential, given the stronger outlook beyond 2027. Similarly, Mizuho Securities maintains its bullish view on Mobileye, with a price target of $48, suggesting 11% upside potential. But the investment bank also warned investors of potential downside risks if rival self-driving car makers demonstrate full self-driving capabilities early. Mizuho has said that slower-than-expected rollouts of advanced driver assistance features and fully autonomous driving capabilities could pose challenges for Mobileye. Analysts at Mizuho Securities said in a note to clients on Jan. 1 that “overall expectations for growth are high, with technical challenges and a slower pace of adoption materially impacting MBLY's top line and future prospects.” “We believe that this could hinder growth opportunities.” Michael Bloom contributed reporting.
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