Mobileye cut to Peer Perform at Wolfe Research
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Contributor since / Followers
Contributor since / Followers
2 weeks ago
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- Mobileye (NASDAQ:MBLY) was in focus on Thursday as Wolfe Research downgraded the Israeli autonomous driving technology company, noting that the debate surrounding it has “meaningfully changed.”
- Shares fell 0.4% in premarket trading.
- Investors now think of Mobileye as a market share loser in the advanced driver-assistance system space, with “limited” opportunities for its Supervision system, Wolfe analyst Shreyas Patil said. Patil lowered his rating to Peer Perform after having moved it to Outperform in April.
- Additionally, there is a debate in the long run over Mobileye’s approach to full autonomy, especially considering that multiple automakers, such as Tesla (TSLA), Nio (NIO), Xpeng (XPEV) and Li Auto (LI) are exploring or are using their own end-to-end artificial intelligence architectures.
- Lastly, management’s messaging on the topic has been very poor and that seems unlikely to change anytime soon, Patil added.
- Analysts are largely bullish on Mobileye (MBLY). It has a HOLD rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha’s quant system, which consistently beats the market, rates MBLY a STRONG SELL.