This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Mobileye Climbs After Analysts Tout Collision Avoidance Technology

Stocks in this article: MBLY

NEW YORK (TheStreet) -- Shares of Mobileye  (MBLY) are rallying after several research firms initiated coverage of the stock with optimistic notes today. Mobileye designs and develops software and chips for camera-based advanced driver assistance systems, or ADAS, which anticipate possible automobile collisions.

WHAT'S NEW: Mobileye's products will be a key component of cars that drive themselves, known as autonomous vehicles, since its products enable vehicles to see and interpret their surrounding environments, wrote Morgan Stanley analyst Ravi Shanker. ADAS is a near-term opportunity for Mobileye, as the percentage of cars with some form of ADAS system should jump to 50% in 2022 from 2% today, Shanker stated. In five to ten years the proliferation of autonomous cars will be equally critical for the company, the analyst stated.

Additionally, Mobileye has an 80% share of the car "vision" market today, and it may be several years before any competitors could make a dent in the company's market share, Shanker believes. He placed a $48 price target on the shares and named the stock a top pick.

Similarly, Citigroup analyst Itay Michaeli wrote that Mobileye's technology is disruptive, as its products enable lower cost cameras to perform ADAS functions better and more cheaply than competing sensors.

Over the next five to ten years, Mobileye will be a key player in solving the problems caused by car accidents, predicted the analyst, who placed a $48 price target on the shares. Among the other firms that initiated Mobileye with Buy, Overweight or Outperform ratings today were Wells Fargo, Deutsche Bank, and Barclays. Goldman and RW Baird, however, started coverage of the stock with Neutral ratings.

PRICE ACTION: In early trading, Mobileye climbed 4.8% to $40.

ANOTHER TO WATCH: Iteris (ITI) , which develops vehicle detection systems and transportation management systems, rose 10.5% to $1.79.

Reporting by Larry Ramer.

The Fly provides comprehensive coverage of stock news and Street research and delivers it in real-time. The Fly breaks market-moving news and explains sudden stock movements in a rapid-fire, short-form story format. Follow @theflynews on Twitter. For a free trial, click here.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs