S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Palo Alto Networks aims at cyber security leadership
3 Reasons the Capital One-Discover merger is a big deal
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Is Gold Really Boring? (Ad)
Housing data weakens, but Toll Brothers stock is still a buy
Teladoc Health gaps down to support level after weak guidance
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Palo Alto Networks aims at cyber security leadership
3 Reasons the Capital One-Discover merger is a big deal
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Is Gold Really Boring? (Ad)
Housing data weakens, but Toll Brothers stock is still a buy
Teladoc Health gaps down to support level after weak guidance
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Palo Alto Networks aims at cyber security leadership
3 Reasons the Capital One-Discover merger is a big deal
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Is Gold Really Boring? (Ad)
Housing data weakens, but Toll Brothers stock is still a buy
Teladoc Health gaps down to support level after weak guidance
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Palo Alto Networks aims at cyber security leadership
3 Reasons the Capital One-Discover merger is a big deal
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Is Gold Really Boring? (Ad)
Housing data weakens, but Toll Brothers stock is still a buy
Teladoc Health gaps down to support level after weak guidance

Mobileye Expects $17.5 Billion Future For Its Driver Assist Tech

Mobileye Expects $17.5 Billion Future For Its Driver Assist TechEven if fully autonomous driving isn’t ready for the consumer marketplace, companies like Mobileye Global Inc. NASDAQ: MBLY are perfecting the technologies to make that a reality. 

Key Points

  • Mobileye Global, which was spun off from Intel in October, has posted gains in each of the past three sessions after forecasting big revenue gains for the next seven years.
  • The company already has paying customers, including Tesla, Volkswagen and Lucid, among others.
  • After the company's last earnings report, analysts boosted their price targets.
  • Wall Street sees earnings growth of 8% for 2022, which the company reports in March, and 2023
  • 5 stocks we like better than Mobileye Global

Mobileye, spun off from Intel Corporation NASDAQ: INTC in October, has been trending higher recently, with gains in the past three sessions.

Investors seem to be embracing the company’s technology of the future, Advanced Driver-Assistance Systems, dubbed ADAS. Although it’s still in startup mode and has a market cap of just $1.7 billion, Mobileye has an advantage that some small, newly public companies don’t: It has revenue-paying customers. 

For example, the company has formed partnerships with automakers, including Tesla Inc. NASDAQ: TSLA, Lucid Group Inc. NASDAQ: LCID, and Volkswagen OTCMKTS: VWAGY.

Mobileye systems are used in driver-assist applications, such as navigation capabilities, collision avoidance, evasive maneuver assist, blind-spot detection, autonomous lane changing, and parking visualization and assistance. 

Autonomous Fleets In Industrial Settings 

Eventually, the goal is full driver autonomy, but that’s not in the cards for consumer applications anytime soon. However, companies like Caterpillar NYSE: CAT operate autonomous fleets in industrial settings.


Earlier this month, as the company exhibited its technologies at the Consumer Electronics Show in Las Vegas, it released a statement saying it sees a revenue pipeline of ADAS business through 2030 of more than $17 billion. The company said that includes $3.5 billion of projected revenue from one system, SuperVision, launched in the fourth quarter of 2021.

Mobileye calls SuperVision the bridge to autonomous consumer vehicles. The technology provides “hands-off” navigation capabilities and is designed to operate in standard driving situations on all roads. A driver is still required to keep his or her eyes on the road at full attention.

Analysts are somewhat bullish on Mobileye for the near-to-medium term. Data compiled by MarketBeat show a consensus rating of “moderate-buy” with a price target of $39.79, representing a 19% potential upside.

Since the company last reported earnings on December 7, two analysts boosted their price targets, and one, JPMorgan Chase, initiated coverage with an “overweight” rating and a price target of $50.

Mobileye Expects $17.5 Billion Future For Its Driver Assist Tech

Seeing Earnings Growth For Mobileye

Wall Street is eyeing earnings of $0.64 per share for the full year of 2022, which the company reports on March 8, ahead of the opening bell. That would be growth of 8% over 2021. Analysts see the company earning $0.18 for the fourth quarter, on revenue of $499.26 million. 

This year, Wall Street expects earnings to increase another 8% to $0.69 per share. The company has grown revenue in the past eight quarters, albeit at inconsistent rates, ranging from 5% to 121%.

The autonomous driving industry was negatively impacted by the Covid pandemic, with companies suspending testing. However, an October report by Strategic Market Research found that the global market size for the autonomous vehicle market as a whole was  $25.14 billion at the end of 2021. That’s increasing at a compound annual growth rate of 25.7% and is forecast to have a value of around $196.97 billion by 2030.

So even if a company like Mobileye has a small market capitalization and is new to the public markets, there appears to be potential for it and its entire industry. Many analysts lauded Intel’s decision to spin off the company, as it was not a strategic focus of the chipmaker. The spinoff allowed Mobileye to raise cash in the public markets and garner analyst attention separate from its parent company.

Mobileye is forming a classic post-IPO pattern: The stock rallied to a high of $37.31 in October, then began correcting. It’s common for newly public companies to stage a strong rally of weeks or months and then go into a selloff as early investors take profits. 

Only within the past few sessions did the stock rack up enough trading days to present a 50-day moving average. Shares closed Tuesday 9.1% above that key price line.

→ Gold Could Be Heading for Record Highs - But How to Play It? (From Edge On The Street) (Ad)

Should you invest $1,000 in Mobileye Global right now?

Before you consider Mobileye Global, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Mobileye Global wasn't on the list.

While Mobileye Global currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Ten Starter Stocks For Beginners to Buy Now Cover

Just getting into the stock market? These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Mobileye Global (MBLY)
3.7637 of 5 stars
$24.50-3.1%N/A-612.35Moderate Buy$45.10
Intel (INTC)
4.6673 of 5 stars
$43.47-2.4%1.15%111.46Hold$41.48
Tesla (TSLA)
4.6977 of 5 stars
$194.77+0.5%N/A45.19Hold$219.89
Lucid Group (LCID)
1.0611 of 5 stars
$3.70+0.5%N/A-2.66Reduce$5.85
Volkswagen (VWAGY)
0 of 5 stars
$14.75+2.3%4.41%N/AHoldN/A
Caterpillar (CAT)
4.6063 of 5 stars
$317.12+1.1%1.64%15.75Hold$292.78
Compare These Stocks  Add These Stocks to My Watchlist 

Kate Stalter

About Kate Stalter

  • stalterkate@gmail.com

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Experience

Kate Stalter has been a contributing writer for MarketBeat since 2021.

Additional Experience

Series 65-licensed investment advisor, financial advisor, Blue Marlin Advisors; investment columnist for Forbes, U.S. News & World Report

Areas of Expertise

Asset allocation, technical and fundamental analysis, retirement strategies, income generation, risk management, sector and industry analysis

Education

Bachelor of Arts, Saint Mary’s College, Notre Dame, Indiana; Master of Business Adminstration, Kellogg School of Management at Northwestern University

Past Experience

Founder, financial advisor for Better Money Decisions; editor, stock trading instructor for Investor’s Business Daily; columnist, podcast host, video host for MoneyShow.com; contributor for Morningstar magazine


Featured Articles and Offers

The Tesla Earnings Story That's NOT Being Told

The Tesla Earnings Story That's NOT Being Told

If the last year of price cuts and sluggish sales weren’t enough to tip off the market to the fact the EV bubble has burst, Tesla’s NASDAQ: TSLA Q4 results and outlook for 2024 should do it.

Search Headlines: