Why Mobileye (MBLY) Stock Is Gaining Today

NEW YORK (TheStreet) -- Mobileye (MBLY) was gaining 11.5% to $47.97 Wednesday following a positive research note from Morgan Stanley (MS) .

The software company could be worth $100 a share in a bull-case scenario, according to Morgan Stanley analyst Ravi Shanker. The company can reach those prices by 2020 if it can keep close to its current 80% market share, Shanker wrote.

The analyst also said that keeping its current pricing, "capitalizing on the aftermarket opportunity from insurance/regulatory support," and growing its market penetration in China would help Mobileye reach $100 a share.

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"These are not heroic assumptions - all a $100 price needs is for MBLY to hold its current position on the above factors. In the absence of credible new competition, we believe this is possible," Shanker wrote.

MBLY Chart MBLY data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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