Mobileye Global Inc. (MBLY) Receives Analyst Approval: A Deep Dive into the Reasons

Mobileye Global Inc. (MBLY) has recently received analyst approval, with several firms upgrading their price targets and ratings for the company. This article explores the reasons behind this positive sentiment and the potential implications for investors.

Strong Q4 2023 Results

Mobileye reported strong financial results for the fourth quarter of 2023, with revenue increasing 13% year over year to $637 million. Operating income and adjusted operating income also improved significantly compared to the fourth quarter of 2022. Diluted EPS (GAAP) was $0.08, and adjusted diluted EPS (non-GAAP) was $0.28. These results were consistent with the preliminary results provided on January 4th, 2024. The company's strong performance in the quarter has contributed to the positive outlook from analysts.



Growth in Future Business Backlog

Mobileye's future business backlog continues to grow, with 2023 design wins projected to generate future revenue of $7.4 billion across 61 million units. This represents a significant increase from the previous year and indicates strong demand for the company's products. The growth in future business backlog has likely contributed to the positive analyst sentiment towards Mobileye.

Expansion of Vehicle Model Pipeline

Mobileye expanded its vehicle model pipeline for SuperVision and Chauffeur from 9 to approximately 30 models in 2023. This expansion was supported by design wins with major global OEMs, including Porsche, FAW, Mahindra, and a large global western OEM. The company also won its most significant advanced product program to date with a major global western OEM, which is expected to generate multiple billions of future revenue. The expansion of the vehicle model pipeline has likely contributed to the positive analyst sentiment towards Mobileye.

Introduction of Driving Experience Platform (DXP)

Mobileye introduced the Driving Experience Platform (DXP) in 2023, which is proving to be in the sweet spot of OEM make vs. buy decisions. DXP enables OEMs to control the driving experience while leveraging Mobileye's efficient silicon and proven sensing, mapping, and decision-making software. The introduction of DXP has likely contributed to the positive analyst sentiment towards Mobileye.

Strong Balance Sheet

Mobileye generated net cash from operating activities of $394 million in the year ended December 30, 2023. The company's balance sheet is strong, with $1.2 billion of cash and cash equivalents and zero debt as of December 30, 2023. The strong balance sheet has likely contributed to the positive analyst sentiment towards Mobileye.

Analyst Upgrades and Price Target Increases

Several analysts have upgraded their price targets and ratings for Mobileye Global Inc. (MBLY) in recent weeks. Some of the notable upgrades include:

* UBS raised its price target from $14.00 to $17.00, a 21.43% increase.
* Oppenheimer raised its price target from $28.00 to $33.00, a 17.86% increase.
* Loop Capital raised its price target from $20.00 to $23.00, a 15% increase.

These upgrades and price target increases reflect the positive sentiment towards Mobileye and the company's strong performance in recent quarters.

Conclusion

Mobileye Global Inc. (MBLY) has received analyst approval due to its strong Q4 2023 results, growth in future business backlog, expansion of the vehicle model pipeline, introduction of the Driving Experience Platform (DXP), and strong balance sheet. The positive sentiment from analysts is reflected in the upgrades to price targets and ratings for the company. Investors should consider these factors when evaluating Mobileye as a potential investment opportunity.