It seems the Hedgies like Mobileye. I suppose it qualifies as more stable.-- Do they have Earn coming up? Maybe this is a sneaky place to use Options>
Mobileye Global Inc. (MBLY)
We’ll start with one of last year’s hottest IPOs. Mobileye is a leader in ADAS (advanced driver assistance systems) and was spun off from parent company Intel in October in an IPO that exceeded its targeted range; the shares made a big splash on the first day of trading, closing out the session up by 38% from its listing price.
Founded in 1999, the Israeli company’s driver-assistance tech has already been utilized in over 125 million vehicles. By 2030, the company expects 270 million more vehicles will be making use of its products. While Mobileye already claims a dominant position in ADAS, it has also set its sights on being the leader in the autonomous vehicle market of self-driving cars, although it could be a while until such offerings become widespread.
On the financial front, the company released its fiscal third-quarter
earnings in December (for the quarter ending October 1).
Mobileye generated revenue of $450 million, amounting to a 38% year-over-year increase while delivering EPS of -$0.06. Both metrics beat Street expectations. Promisingly, for FQ4, the company is calling for revenue between $527 million to $545 million, exceeding the $483 million Wall Street predicted. For the full year,
the company anticipates revenue north of $1.83 billion, above the $1.78 billion forecast, and operating income of at least $637 million.
For Citi analyst Itai Michaeli, the bull case for the ADAS leader is clear. “Mobileye is at the center of what we have long viewed as the most virtuous cycle of incremental content to ever occur in the industry,” the analyst said. “We believe the company’s competitive advantages have only grown in recent years, led by an innovation-data loop and a highly scalable ADAS-AV product suite.
We see 2030E revenue of >$50bln (vs. ~$2bln now) and expect a domino effect of ADAS/AV adoption to create a catalyst-rich environment for the stock.”
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Michaeli's long term outlook is bright for MBLY stock, and he backs it with a Buy rating and a $77 price target that implies a one-year upside potential of ~123% for the stock. (To watch Michaeli’s track record,
click here)
Michaeli is the Street’s most prominent MBLY bull but plenty of others are backing its case. The stock claims a Strong Buy consensus rating, based on 14 Buys vs. 3 Holds. The average target stands at $43, implying the shares have room for 12-month growth of 25%.