Needham analyst Quinn Bolton reiterated Mobileye International Inc MBLY with a Purchase and a $43 value goal.
Mobileye reported a strong quarter however barely lowered its CY23 income forecast as SuperVision (SV) shipments are monitoring in the direction of the low finish of steerage of 100-115k items.
Bolton’s key takeaways revolve round progress with greater common promoting value (ASP) packages. MBLY added an SV engagement with a tenth OEM in 3Q23.
These OEMs are geographically various, and of the 7 engagements excellent, 6 have a >80% likelihood of changing into design wins.
Ford Motor Co’s F BlueCruise could contribute 500k items to Cloud-Enhanced (CE) ADAS in CY24. The brand new FAW relationship provides one other SV and Chaueffer (CAV) buyer.
The primary SV Lite win (Tier-2 provider at ~$200 ASP) provides to 2025 ASP estimates and comes ~6 months after the corporate introduced the platform.
Bolton views every of the alternatives underscores his “stair-stepping up the ADAS stack” thesis.
The analyst tasks This autumn income of $635 million (prior $650 million) vs. consensus $659.91 million and EPS of $0.24 (prior $0.23) vs. consensus $0.23.
Raymond James analyst Brian Gesuale had a robust Purchase on the inventory with a value goal of $50.
The re-rating displays the gross sales and adjusted EBITDA beat by 1% and 13%, margins impress (36% vs. 32% Raymond James estimate), and enterprise improvement prices full steam forward.
The 4Q SV shipments will contact the low finish of the prior information by means of success with Zeekr, Polestar, and FAW rollouts, progress with 10 core OEM prospects, and rising international curiosity.
Content material and automobile thesis progressing, the analyst notes. Low single digit ASP progress to $54, design wins expectations sturdy, CPV progress, 9.4 million programs shipped, and quantity momentum.
The analyst sees 2024 as poised for accelerating progress, increasing margins, and potential award bulletins ought to drive appreciation.
Worth Motion: MBLY shares traded decrease by 3.92% at $34.99 on the final test Friday.
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