NEW YORK (TheStreet) -- Shares of Mobileye (MBLY) closed higher by 1.43% to $40.36 on heavy trading volume on Tuesday even though the company's stock rating was reduced to "neutral" from "buy" at Goldman Sachs on a valuation call.
The firm also lowered its price target to $40 from $45 on the maker of technology for sell-driving cars due to the stock's recent outperformance, Barron's reports.
Analysts downgraded the stock because shares of the Jerusalem-based company have increased about 60% since February, but are still upbeat about Mobileye's business.
"We see Mobileye occupying a highly important strategic position given that the autonomous driving market is moving more rapidly than previously anticipated by the industry, driving traditional OEMs to pursue more ambitious timelines and partner with credible software players, as they seek to fend off threats from tech companies," analysts explained, Barron's added.
By the end of the trading day, 3.04 million shares of Mobileye had exchanged hands, compared with its average daily volume of 2.86 million shares.
Separately, Mobileye has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's generally disappointing stock performance and premium valuation.
You can view the full analysis from the report here: MBLY
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.