NEW YORK (TheStreet) -- Shares of Mobileye NV (MBLY) were gaining, up 3.13% to $54.70 in late morning trading Thursday, after analysts at CLSA initiated coverage on shares of themaker of driver assistance systems this morning.
Mobileye was initiated with a "buy" rating and a $67 price target by CLSA analysts.
The firm projects sales to grow 50% or more through 2020.
Israel-based Mobileye designs and develops software and related technologies for camera-based advanced driver assistance systems.
The company's systems can perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris or other obstacles.
Insight from TheStreet's Research Team:
Mobileye is a part of Bryan Ashenberg's GrowthSeeker.com Portfolio. Here is what Ashenberg had to say about the stock in a recent weekly summary:
Shares of Mobileye soared 6% this week, on top of last week's 10% gain. The catalyst for the shares move has been the National Transportation Safety Board's call on car manufacturers to make collision avoidance systems standard in newly manufactured vehicles. In an extensive report, the NTSB highlighted that collision warning systems, particularly when paired with active braking, could significantly reduce the frequency and severity of rear-end crashes.
Mobileye stands to benefit from these recommendations as it designs and develops software and related technologies for camera-based advanced driver assistance systems. Mobileye's systems marry the company's proprietary software algorithms and its system-on-a-chip design (EyeQ) to provide visual information for the driver- assistance-systems market.
As more entities and manufacturers are urged to make the technology that Mobileye delivers as a standard offering, the total addressable market widens considerably and increased sales should follow. We remain bullish on the stock and see a strong growth ramp ahead for the company.
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MBLY Price data by YCharts