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RBC: Mobileye (MBLY.US) is expected to win new contracts, partners may include Honda (HMC.US), Toyota (TM.US) and others

Market IntelWednesday, Dec 11, 2024 8:30 am ET

1min read

RBC Capital published a research note stating that a presentation released by Mobileye Global (MBLY.US) during an investor event in Munich may have hinted at the company's potential to win a contract. Analyst Tom Narayan said that one slide in the presentation may have indicated that the company was about to be nominated by a Japanese original equipment manufacturer (OEM). Another slide showed the next nomination phase written as "2-3 months". It also included an European OEM that may be about to receive a nomination for a contract related to Surround ADAS technology. The US OEM was believed to be in the negotiation and decision-making stage, the analyst added, which was before the nomination steps.Narayan noted that while no formal contract had been awarded yet, the stage of the Japanese OEM may have meant that it was about to be granted. He added that this was the top question in conversations with investors - whether Mobileye would announce an OEM contract for its driving assistance system SuperVision.Narayan said they did not expect an agreement to be announced at the event, but the possibility of the company being close to one was a positive factor.The analysts believed that the four Japanese OEMs that may be involved were Honda (HMC.US), Toyota (TM.US), Nissan (NASNY.US) and Mazda (MZDAY.US). The analysts said that a deal with either Honda or Toyota, considering sales volumes, could be significant.A spokesperson for Honda said in an email: "We do not discuss our supplier relationships or comment on speculation."RBC analysts speculated that the US OEM that may be in the negotiation stage was General Motors (GM.US), while the European OEM that may be close to a deal related to Surround ADAS was Stellantis (STLA.US) or Renault (RNLSY.US).General Motors said in an email statement: "We do not participate in rumors and speculation."Mobileye, Toyota, Nissan, Stellantis and Renault did not respond to requests for comment prior to the publication of this report.

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