On Monday, Mizuho (NYSE:MFG) Securities maintained a neutral stance on Mobileye N.V. (NASDAQ:MBLY), with a price target of $17 following Mobileye's recent Capital Markets Day event held in Munich, Germany.
The firm highlighted several key developments from the event, including the potential announcement of a new SuperVision contract with a Japanese automaker and a Surround ADAS deal with a European OEM within the next one to two quarters. However, the start of production for these technologies is not anticipated until the year 2027.
The analyst noted Mobileye's competitive edge, citing the lower cost and redundancy of its systems compared to its competitors. Furthermore, the company's EyeQ6H technology was recognized for delivering double the TOPS (tera operations per second) and ten times the FPS (frames per second) compared to the previous EyeQ5H, with only a 22% increase in power requirements.
Despite the positive technological advancements, Mizuho expressed caution regarding the 2025 global automotive growth outlook. The firm pointed to tariff risks posed by the new U.S. administration as a potential headwind for the auto industry, with specific challenges for companies like Zeekr and Polestar (NASDAQ:PSNY) in the Chinese market.
The price target increase to $17 is based on approximately 5.8 times Mizuho's forecasted 2026 price-to-sales ratio, up from the prior multiple of 5.4 times. This valuation is considered fair when compared to the industry average of around 6.5 times.
Mizuho acknowledged Mobileye's position as a global leader in the vision ADAS market and its promising autonomous technology roadmap, but remains cautious due to near-term challenges in the automotive and electric vehicle sectors, as well as competition in China.
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