Mobileye Gains Analyst Upgrade On 2025 Catalysts, But Profit Delays And Competition Keep Rating Neutral

Group 1 - Mobileye Global Inc's stock increased by 16.4% to $18.70 after BofA Securities analyst John P. Babcock upgraded the stock from Underperform to Neutral and raised the price target from$12 to $19 [1][7] - Babcock's cautious stance was influenced by the uncertainty regarding growth and profit outlook, with 2025 guidance falling below BofA and consensus estimates, although this limits downside risk [1][6] - The analyst's discussions with investors indicate that sentiment may be bottoming, with potential contract wins in 2025 serving as catalysts for growth [2][5] Group 2 - Babcock's valuation analysis suggests that Base/Cloud-Enhanced ADAS volumes will remain steady through 2040, with expectations for ADAS products to penetrate a growing portion of the auto market [3][4] - The deployment of advanced AV products is anticipated to drive a gradual shift in market share, with significant contract wins expected in 2025 [5][6] - Projected sales for fiscal years are$1.73 billion in 2025, $1.81 billion in 2026, and$2.07 billion in 2027, indicating a moderate improvement in adjusted operating income [6][7]