Mobileye: UBS no longer a buyer, cuts TP

(CercleFinance.com) - UBS announced on Friday that it had downgraded its recommendation on Mobileye shares from 'buy' to 'neutral', with a target price lowered from $20 to $14.


The broker acknowledges that its downgrade comes at a bad time, as the market is now well aware of the difficulties faced by the specialist in advanced driver assistance systems (exposure to China, postponement of SuperVision orders, technological concerns), which have led to a marked underperformance of the stock.

While UBS believes that the autonomous driving group remains a partner of choice in the long term for automakers outside China, it believes that it will take time for the company to return to growth, and that FY 2025 is likely to remain a year of 'transition'.

It believes that the market will once again have to reduce its forecasts, leading it to set estimates 28% below consensus for 2025-2027.

Believing that the stock is likely to sail without any real direction until the turnaround is complete, and until the issue of Intel, its majority shareholder, is resolved, UBS prefers to steer clear of the stock for the time being.


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