Mobileye Susceptible To Auto Industry Challenges, Inventory Corrections and Geopolitical Factors: Analyst
Portfolio Pulse from Anusuya Lahiri
Needham analyst Quinn Bolton maintained a Buy rating on Mobileye Global Inc (NASDAQ:MBLY) but lowered the price target from $43 to $36 due to challenges in the auto industry, inventory corrections, and geopolitical factors. Preliminary 4Q23 results showed better operating income than expected, but FY24 guidance was below expectations. MBLY has built up significant EyeQ inventory, which may see digestion in 1Q24. The company's market share remains unchanged, but key customers may have lost share to competitors. The ongoing Israel-Hamas war could impact operating expenses. Bolton's CY25 revenue and EPS estimates were reduced, reflecting in the price target cut. MBLY shares dropped 1.77% to $30.50.
January 05, 2024 | 8:59 pm
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Needham analyst Quinn Bolton reaffirmed a Buy rating on Mobileye but reduced the price target from $43 to $36, reflecting lower revenue and EPS estimates for CY25 due to industry challenges, inventory corrections, and geopolitical concerns.
The reduction in price target by a respected analyst due to industry-wide challenges and specific inventory issues at Mobileye is likely to negatively impact investor sentiment in the short term, leading to a potential decrease in stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100